Aeffe SpA, the parent company of well-known fashion brands like Moschino and Alberta Ferretti, experienced a significant decline in sales and a net loss in the first half of the year. The company reported a sales decrease of 31.4%, dropping to €118.9 million from €173.3 million in the same period last year. This decrease in sales resulted in a net loss of €10.9 million, a stark contrast to the net profit of €5.1 million recorded in the previous year. The impact of the Covid-19 pandemic played a major role in these disappointing results, as consumer spending took a hit.
Massimo Ferretti, the executive chairman of the company, acknowledged the challenges brought about by the pandemic. However, Aeffe SpA implemented various strategies to mitigate the impact of the crisis. The company expanded its outsourced production base to ensure the timely delivery of the Fall/Winter 2020 collections. Additionally, Aeffe SpA launched a cutting-edge “virtual showroom” to showcase new collections to industry stakeholders and buyers unable to travel due to restrictions.
During the first half of the year, the company’s wholesale revenue declined by 28.3% to €86.7 million, while retail sales dropped by 41.3% to €27.1 million. The company’s EBITDA for the period fell to €0.6 million. Sales in the Italian market saw a significant decline of 34%, totaling €52.7 million, with both wholesale and retail channels impacted by pandemic-related restrictions. In contrast, sales in the rest of Europe decreased by 4% to €37.1 million. Sales in Asia and the rest of the world also experienced a significant decline of 45.2%, reaching €24.9 million, while sales in America plunged by 55% to €4.1 million.
The challenges faced by Aeffe SpA are indicative of the broader struggles experienced by the fashion industry due to the pandemic. As companies continue to adapt to the evolving landscape, embracing innovation and flexibility will be crucial in navigating these uncertain times. Aeffe SpA’s investment in virtual technologies and the expansion of production capabilities showcase the company’s commitment to resilience and adaptability in the face of adversity.
For more information on Aeffe SpA and its fashion brands, visit their official website here.
To stay updated on industry news and trends in the fashion world, check out the latest articles on Vogue Business here.
