• FY loss of CHF10.8m versus CHF29.6m
  • Sales down 4.8% to CHF901.2m
  • Company will press ahead with turnaround  

Swiss fashion retailer Charles Vögele Group has said it will press ahead with its turnaround this year, including the implementation of its new store format, after narrowing its annual net loss.

Its net loss amounted to CHF10.8m (US$11.3m) in the year to 31 December 2014, compared to CHF29.6m in the same period of the prior year.

Sales fell 4.8% to CHF901.2m from CHF946.5m a year ago, with all regions suffering from "intense competitive pressure" and lower sales in September, October and November.

Despite the decline, the group said it made “significant progress” with its turnaround, with the main improvements in range focus, merchandise management and the successful implementation of its store format strategy.

These remain the main priorities for Charles Vögele. By the end of 2015, the retailer expects all stores in Switzerland to have been switched to the new layout, while stores in the other countries being converted in parallel.

The company added that the much improved and clearer presentation of goods helps to emphasise the tighter focus of its collections.

“We have set the course for the future,” said chairman Hans Ziegler. “We have streamlined the organisation and there is a clear plan for the collection as well as the store layout.”