Home / Knowledge / News / Fashion / Despite fall in H1 sales, Charles Vogele profits scale up
Despite fall in H1 sales, Charles Vogele profits scale up
Aug '13
In a challenging market environment, Charles Vögele Group improved its operational efficiency in the first half of 2013 and increased its gross profit margin. With gross sales reduced by 4% to CHF 555 million, gross profit went up by CHF 16 million to CHF 303 million. 
Operating earnings (EBITDA) came to CHF 4 million. The consolidated loss for the first six months was down from CHF -54 million a year previously to CHF -21 million. This marks a further step on the road back to sustainable profitability.
The long winter and gloomy weather hampered sales throughout the whole clothing sector in spring 2013. With lots of rain, record low temperatures and only a few hours of sunshine, the whole industry suffered. Some providers saw business fall by up to 20% in the first quarter. 
The odd warm day in April and sunny spells in June provided some relief. As a result of the disappointing turnover, the sales season was brought forward in many places, which intensified competition still further. Some providers were already discounting their goods by up to 50% in May. 
Commenting on the first half year, Markus Voegeli, CEO of Charles Vögele, says: "We didn't panic when other companies started discounting so early but held our sales during June as planned - and so benefited from better margins."
Increase in gross profit and positive EBITDA    
The company's net sales fell by 4% to CHF 466 million. After adjusting for exchange rates and floorspace (like-for-like) the fall was 5%. The management team focused on improving operating results. Thanks to targeted discount management, Charles Vögele was able to increase its gross profit despite the lower sales. 
At CHF 303 million, gross profit was 6% up on the year-back figure. The gross profit margin went up accordingly from 59% to 65%. Continued strict cost management kept operational costs down. These were another CHF 11 million lower than in the prior-year period at CHF 299 million. 
Operating earnings before depreciation and amortization (EBITDA) were positive at CHF 4 million, compared with the negative result of CHF -23 million a year previously. Operating earnings (EBIT) came to CHF -16 million in the first half of 2013, compared with the year-back figure of CHF -49 million. The consolidated loss was much smaller at CHF -21 million, compared with CHF -54 million in the first half of 2012.

Charles Vogele

Must ReadView All

Master plan to reshape clothing sector in S Africa

Apparel/Garments | On 25th Jun 2019

Master plan to reshape clothing sector in S Africa

A master plan submitted to the Department of Trade and Industry in...

Pak's pending textile sector refunds Rs 200 bn

Textiles | On 25th Jun 2019

Pak's pending textile sector refunds Rs 200 bn

Pakistan has to pay Rs 200 billion as pending textile sector refunds, ...

Withdraw advance tax on textile machinery import: BTMA

Textiles | On 25th Jun 2019

Withdraw advance tax on textile machinery import: BTMA

The Bangladesh Textile Mills Association recently urged the...

Interviews View All

Headhonchos, Textiles & allied industry

Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mukesh Agarwal & Rajesh Agarwal, Madhuram Fincap Pvt Ltd

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Puneet Jain & Yatin Jain,

Puneet Jain & Yatin Jain

Odhni is an indutva or ethnicwear brand started in 1999 by the Jain...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Justin Gutierrez, INDA

Justin Gutierrez

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search