• H1 net loss improves to CHF12m
  • Gross margin widens to 66%
  • Net sales fall by 3%

European fashion retailer Charles Vögele Group has reported an improved net loss and gross margin in the first half as the firm's turnaround measure begin to take hold.

Charles Vögele's net loss improved by CHF9m (US$9.9m) to CHF12m in the six month period, thanks to the company being able to grow in its existing floor space, increasing its gross sales across almost all regions.

Gross margin widened to 66% from 65% in the year ago period.

Net sales fell by 3% during the period to CHF452m, but on a like-for-like basis, marginally improved by 0.4%. In Germany, gross sales improved 1.9%, in the Benelux region by 1.6% and in CEE by 1.9%. Sales in Switzerland, however, dropped 0.4%.

In April last year, the company exited the Polish and Czech markets, resulting in the closure of 22 stores, which was completed in July 2014.

"The main focus during the second half of the year will be the continued implementation of the current turnaround measures," the company said. "The primary aims for 2014 are to bring a halt to the downward sales trend (like-for-like) as well for the complete business year 2014 and to record a break-even result (EBIT)."