Charles Vögele Group lays solid basis

Media Release
Half-year results 2003
Charles Vögele Group lays solid basis
In the first half of 2003, the Charles Vögele Group, which is internationally active in fashion
retailing, not only attained its half-year targets, but partly exceeded them. This included
reducing inventories by a further CHF 62.5 million to CHF 284.9 million, and net debt by CHF
98.1 million to CHF 333.7 million. The goal for the year of reducing net debt by CHF 100.0
million has therefore already been achieved by mid-year. Relative to the same period in the
previous year, net income improved by 32%, rising from CHF 13.1 million to CHF 17.3 million.
Improved operating result despite declining sales
In the first half of 2003, the top priority of the Charles Vögele Group continued to be improving
profitability. The expected decline in net sales amounted to -6.6%, from CHF 751.2 million to CHF
701.5 million. Gross profit at CHF 400.2 million was also slightly lower than the previous year (CHF
411.9 million). However, thanks to the lasting effects of the implemented cost-cutting measures and
improvements in efficiency, relative to the previous year the gross profit margin increased from 54.8%
to 57.1%, EBITDA from CHF 80.7 million to CHF 84.2 million, and EBIT from CHF 47.1 million to CHF
49.6 million.
Higher cash flow and loans repaid in advance
The reduction in inventories which was resolutely pursued in the first half-year has brought the total
target reduction in inventories for the year of CHF 75 million within reach, and benefited the cash flow.
Together with the positive effects of the increase in operating profit, the cash flow rose to CHF 119.1
million, which is an increase of CHF 20.1 million on the previous year. This allowed repayments of
credit lines foreseen up to August and amounting to CHF 102.5 million to be completed earlier. All
loan repayments due in 2003 have therefore already been made.
Profitability of the sales organisation improved
Despite falling revenues in the sales organisations (except Austria, +1.1%), EBITDA at Group level
improved. While operating profit (EBITDA) in Switzerland at CHF 41.9 million remained slightly below

the record value of last year (CHF 43.1 million), all other markets posted positive developments
relative to the previous year. This was especially the case in Germany, where there was an increase
relative to the first half of 2002 of CHF 6.9 million from CHF –3.0 million to CHF +3.9 million.
Further potential savings identified
The analysis phase for introduction of the new Supply Chain Management was completed on time.
This brought additional substantial potential savings to light, which will have their full effect on profits
after the project is completed at the end of 2004. The annually recurring cost savings will provide the
Charles Vögele Group with a greatly improved operational platform, especially for exploiting the
market and in terms of competitiveness.
Outlook
For the second half of 2003, the Charles Vögele Group does not foresee any significant improvement
in consumer sentiment, and therefore expects a further slight decline in sales. The focus on
profitability, reducing inventories, and repaying net debt are still the top-priority goals. The target
inventory reduction for the year will be achieved, and by the end of the year the repayment of net debt
– thanks to a further minor repayment in the second half-year – will exceed the amount originally
expected. The targets for sales and operating profit (EBITDA) communicated at the start of the year
remain unchanged.
Charles Vögele Holding AG
Charles Vögele Holding AG is a leading independent European fashion retailer with 774 stores in
Switzerland, Germany, Austria, Belgium and the Netherlands, which in the first half of 2003 had a
total of more than 7,900 employees. The shares of Charles Vögele Holding AG are listed on the SWX
Swiss Exchange (Ticker: VCH; Bloomberg VCH SW; Reuters VCHZ.S).
Pfäffikon, September 2, 2003
The original text of this media release is also available at www.voegele-mode.com.
For further information, please contact:
Renzo Radice
Head of Corporate Communications & Investor Relations
Charles Vögele Trading AG
Gwattstrasse 15
8808 Pfäffikon
Switzerland
Tel. +41 55 416 71 11
Fax +41 55 410 12 82
Email: renzo.radice@voegele-mode.com