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“Our core target groups are women and men aged 40 and over. By providing an upto-date range, excellent value and expert advice, we aim to give these people straightforward access to fashionable clothing. Our customers can rely on our fashion expertise.”
DEAR ShAREhOLDERS In 2011 Charles Vögele pushed ahead with the implementation of its 3pillar strategy. The necessary processes for the centralization were stabilized and the brand Charles Vögele stands for fashion expertise again. However, the positive effects of this were overshadowed by negative external and internal factors. Tougher operating conditions presented a particular challenge in the company’s restructuring. Coupled with difficulties in implementing the modernization strategy, a weakness in our ladies collection and uncertainty amongst customers about just where Charles Vögele is positioned, led to results that fell well short of expectations. Strong Swiss franc, euro crisis, unusual warm autumn 2011 was marked particularly by a challenging economic environment with a strong Swiss franc. In Charles Vögele’s home market Switzerland this led to a reduction in spending and uncertainty amongst customers. This was compounded by an outflow of spending in the neighbouring countries and a drop in visitor numbers to Switzerland. Both factors had a further negative effect on the market and Charles Vögele. In the euro region the economic prospects deteriorated further during the course of the heightening debt crisis. Last but not least, an unseasonably warm autumn led to a fall in sales of essentials in the key winter business. Logistical problems, customer uncertainty, weakness in collections The external problems should not distract us from the internal difficulties. The optimization of logistics, involving a reduction from nine to three regional distribution centres and simultaneous outsourcing to two external providers in the south and north of Europe, presented a challenge. The timetable was too ambitious, leading to massive teething trou ceo’s <strong>report</strong> 7 bles in the third quarter and a shortage of merchandise supplies. The stabilization of the processes therefore represented a key priority in the fourth quarter. The umbrella brand campaign, Charles Vögele’s updated image and its new store design, caused a sensation in the fashion world. However, it also made customers uncertain about just where Charles Vögele is positioned. Particularly in its ladies collection Charles Vögele was unable to fulfil the fashion claims to the extent implied by the new image. Significant fall in sales and consolidated loss Net sales fell during the 2011 financial year by 15 % to CHF 1 016 million (previous year: CHF 1 198 million). Approximately CHF 86 million of this fall was due to the sharp depreciation of foreign currencies (mainly the euro) against the Swiss franc. In local currency terms, the decline in sales was 9 %, or CHF 96 million, and after adjusting for changes in exchange rates and floorspace (likeforlike) 8 %, or CHF 82 million. The fall in sales was mainly due to the performance in the second halfyear. Increasing procurement prices as well as increasing labour costs reduced gross margin to 62 % (previous year 67 %). Helped by the weaker euro operating expenses were reduced by CHF 45 million to CHF 646 million (previous year: CHF 691 million). The fall in the value of the euro against the Swiss franc prompted a revaluation of the goodwill position in Germany and Austria. A goodwill impairment of CHF 36 million had to be made in the first half of 2011, resulting in operating earnings of CHF − 114 million (previous year CHF 38 million) and a consolidated loss of CHF 119 million (previous year: CHF + 18 million). Financial <strong>report</strong> | corporate governance | the World of Fashion | corporate social responsibility | overview of regions | annual review | CEO’S REPORT | chairman’s message
Page 1: annual report 2011
Page 4 and 5: Group KeY FiGures Five-Year overvie
Page 6 and 7: 4 6 11 13 14 15 17 18 19 31 43 cont
Page 8 and 9: “The annual results for 2011 mark
Page 12 and 13: Outlook: return to profitable growt
Page 14 and 15: Filippo, 44 Charles Vögele Store S
Page 16 and 17: annual revieW The country merchandi
Page 18 and 19: sWitZerlanD region A difficult envi
Page 20 and 21: Jakub, 48 Charles Vögele Store Wol
Page 22 and 23: BeneluX region Lack of confidence i
Page 24 and 25: Dorota, 48 Charles Vögele Store Wo
Page 26 and 27: 1 CuStomer reSponSibility anD proDu
Page 28 and 29: Value-Added Statement menting the
Page 30 and 31: 3 our employeeS Our employees’ kn
Page 32 and 33: Climate friendly operations - We ar
Page 34 and 35: Environmental criteria in the suppl
Page 36 and 37: News Stores worldwide By the end of
Page 38 and 39: The spring collection “California
Page 40 and 41: Til Schweiger behind the scenes Sin
Page 42 and 43: CharleS Vögele By NumBerS 7 300 em
Page 44 and 45: Sarah Connor
Page 47 and 48: CORpORATE Charles Vögele Group is
Page 49 and 50: 1 GroUp StrUCtUre anD SHareHoLDerS
Page 51 and 52: 2.6 restrictions on transferability
Page 53 and 54: Hans Ziegler Chairman of the Board
Page 55 and 56: - Nomination and Compensation Commi
Page 57 and 58: 3.6 Information from and control ov
Page 59 and 60: 4 GroUp ManaGeMent Group Management
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The share option plan in place for
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7.5 entry in the share register The
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Financial RepoRt
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Financial coMMentaRY 2011 was a tur
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Financial expenses and taxes Financ
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At 31 December CONSOLIDATED bALANCE
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CHF 1000 Note From 1 January to 31
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2.3 Basis of consolidation The cons
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2.7 Net sales and revenue recogniti
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The amounts shown under shareholder
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2.17 Impairment of assets All capit
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2.23 Treasury shares The costs of t
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CHF 1000 EUR / CHF USD / CHF 2011 i
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CHF 1000 < 1 year 1 - 5 years > 5 y
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4 Critical accounting estimates and
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5 Segment information Switzerland G
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The pension liabilities and plan as
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The pension liability of the German
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15 Income tax 15.1 Composition of i
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15.5 Tax-relevant loss carry-forwar
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Other receivables are not related t
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20.2 Finance leases The carrying am
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22.2 Impairment test on goodwill CH
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24 Short-term financial liabilities
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CHF 1000 28 Mortgages Balance at 1
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32 Treasury shares As of 31 Decembe
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Tranche The weighted average remain
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Movement in valuation differences n
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2011 CHF 1000 Details of total paym
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Balance, at 31 December 2011 Disclo
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41 Structure of the Charles Vögele
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Opinion In our opinion, the consoli
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From 1 January to 31 December INCOM
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NOtES tO thE FINaNCIal StatEMENtS 1
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Shareholders 66 Share of capital as
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Report of the statutory auditors to
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Share performance Price performance
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Charles Vögele makes fashion.
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