Italian fashion group Aeffe is celebrating a successful year in 2018, marked by a remarkable 46% increase in net profit. The company, which boasts renowned brands like Alberta Ferretti, Philosophy, Moschino, and Pollini, as well as licenses for Jeremy Scott and Cédric Charlier, saw growth across all economic indicators.
The significant growth in earnings is a testament to Aeffe’s strong performance throughout the year. With a net profit of 16.7 million euros, a substantial increase from the previous year, and annual net revenues reaching 346.6 million euros thanks to a double-digit growth rate of 10.9%, the company has truly excelled. Earnings before interest and taxes (EBIT) also saw a notable 31% increase, totaling 29.6 million euros, while earnings before interest, tax, depreciation, and amortization (EBITDA) saw an 18.5% increase, amounting to 43.3 million euros. These impressive figures were made possible by boosted sales and reduced operating costs, reflecting Aeffe’s successful new business model.
Aeffe’s ready-to-wear division remains a key revenue driver, contributing 69% to total sales. Moschino continues to be the standout brand, accounting for 72% of total revenues. While there was a slight decrease in sales of licenses for Cédric Charlier and Jeremy Scott, other divisions like Philosophy by Lorenzo Serafini, Alberta Ferretti, and Pollini showed promising growth.
Geographically, Aeffe experienced growth in all regions except America, where sales decreased slightly. The company’s presence in Asia and other international markets, particularly Greater China, saw substantial increases. European sales experienced a moderate uptick, with Italy remaining Aeffe’s largest market.
The wholesale channel continues to be crucial, representing 71.5% of total sales, while sales in the company-owned retail network also experienced growth. Aeffe currently operates 64 company-owned stores and 184 franchise locations worldwide, catering to its global customer base.
Looking to the future, Executive Chairman Massimo Feretti has outlined plans for brand development, particularly in the accessories segment, and optimization in high-potential markets, with a focus on the Far East. Aeffe’s significant reduction in net financial debt in 2018 reflects the company’s commitment to fiscal responsibility and operational efficiency.
In conclusion, Aeffe’s remarkable growth in 2018 solidifies its position as a major player in the fashion industry and sets the stage for continued success in the future.
For more information on Aeffe’s brands and collections, visit their official website here. To stay updated on the latest fashion news and trends, check out fashion industry publications like Vogue here.
