Charles Vögele's 2006 results, to expand in Hungary
06 Mar '07
3 min read
Fashion retailer Charles Vögele Group generated solid operating results in the business year 2006 and launched expansion in new markets by declaring Hungary as expansion market ahead of schedule.
The goodwill of CHF 74 million of the Netherlands Sales Organization has been impaired. With the company still enjoying a sound financial position, the shareholder-friendly distribution policy is being continued, and the Board of Directors will be asking the Annual Shareholders' Meeting to approve a CHF 2.00 reduction in par value.
2006 results: higher fall sales: Although temperatures reached record highs in fall 2006, which was very bad news for the clothing industry in general, Charles Vögele Group managed to increase its sales in the second half of 2006 by 2% year-on-year. The operating earnings (EBITDA) of approximately CHF 90 million that this generated were just short of the company's best half-year results in the last five years.
Overall, the Charles Vögele Group generated net sales of CHF 1 324 million in 2006, a decline of about 1.8% on the CHF 1 348 million posted in 2005. Gross profit for the period under review came to CHF 818 million (previous year CHF 822 million), with the gross profit margin improving to 61.8% (previous year 61.0%).
Operating results before depreciation (EBITDA) came in at CHF 143 million (previous year CHF 165 million), giving an EBITDA margin of 10.8% (previous year 12.3%). After deducting depreciation, this left operating earnings (EBIT) of CHF 86 million before the goodwill impairment, compared with the previous year's CHF 109 million. Net profit before the goodwill impairment came to CHF 55 million (previous year CHF 70 million). After allowing for the goodwill impairment of CHF 74 million, this left a group loss of approximately CHF 20 million.
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