Positive free cash flow at Charles Vögele

23 Aug '12

5 min read

In Germany net sales fell by –2% year-on-year in local currency terms, while the market as a whole shrank by –6%. Looking to the future, Charles Vögele wants to exploit market potential in Germany more effectively. Large regional differences are evident in the markets of Central & Eastern Europe (CEE). The environment remained very demanding in Poland. Slovenia and Austria also failed to meet expectations. In Hungary, by contrast, Charles Vögele was able to consolidate sales. In the challenging markets of Belgium and the Netherlands (Benelux), Charles Vögele managed to increase like-for-like net sales by 5%.

During the first half of 2012, Charles Vögele refocused its activities more strongly on the requirements of its core clientele: women and men aged 40 and over. The company has worked hard on its products and on a clear positioning in an attempt to mitigate insecurity among customers.

Thanks to the reorientation of the organization along the whole value chain, it was possible to make procurement less complex while significantly increasing the reliability and quality of processes and products. Initial successes will become apparent in the second half of the year. Teething problems in logistics have been sorted out, and distribution of goods has been functioning smoothly again since the beginning of the year. Thanks to the outsourcing of logistics, the company is now benefiting from a more flexible cost structure and lower capital expenditure.

The Annual Shareholders’ Meeting of 4 April 2012 revitalised the Board of Directors by electing Dr. Ulla Ertelt, Prof. Matthias Freise, Max E. Katz, Dirk Lessing and Hans Ziegler (already a member) as its members. All of these people are proven experts in their fields and have the right know-how to take Charles Vögele back to profitable growth.

Charles Vögele is currently in advanced talks about the addition of a suitable COO (Chief Operating Officer) to Group Management, and hopes to be able to make an announcement during the second half of the year. Frank Beeck will continue to handle the CCO (Chief Commercial Officer) function in tandem with his role as CEO. The company has significantly strengthened its second tier of operational management: on 1 February 2012 Karin BusnelKnappertsbusch (47) started her job as Vice President Women’s Wear. Karin Busnel-Knappertsbusch is an experienced fashion specialist, who has previously worked for various international brands.

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