In the first half of 2019, Aeffe, the renowned Italian fashion group, faced a tough economic environment that led to a decrease in earnings. The wholesale channel saw a 2.4% decline in sales across regions except for Asia, with notable brands like Alberta Ferretti, Philosophy, and Pollini experiencing setbacks. However, Moschino emerged as a standout performer during this period.
Despite these challenges, Aeffe’s overall revenue held steady, showing a modest 1.3% increase to reach 173.3 million euros by the end of June 30, 2019. Massimo Ferretti, the group’s Executive Chairman, pointed to the slowdown in the wholesale sector as a major factor impacting margins.
During this period, the group saw a rise in expenses related to production, marketing, and research & development. Investments were made to enhance the group’s positioning, visibility, and e-commerce capabilities, resulting in a 37% decline in net earnings to 5.2 million euros, excluding the impact of the IFRS 16 accounting standard.
On a positive note, Aeffe’s EBITDA experienced a significant boost, increasing by 27.2% to reach 26.7 million euros compared to the same period in 2018. Moschino remained a key revenue generator for Aeffe, contributing to 75% of total sales. The ready-to-wear division also continued to perform well, with steady revenues of 132.2 million euros.
While facing headwinds in Europe and America, Aeffe found growth opportunities in the “Asia and rest of world” region, where revenues surged by 14.8% to 45.5 million euros. The group remains focused on navigating the challenging economic conditions, strengthening its brand portfolio, and expanding its global footprint.
To learn more about Aeffe and its recent financial performance, you can visit their official website here. Additionally, for insights into the latest trends shaping the fashion industry, check out this informative article here.
