Italian fashion group Aeffe SpA has reported a 5.1% increase in consolidated revenues for the first quarter of 2021. The company, which owns popular brands like Moschino and Alberta Ferretti, saw its revenues rise to €80.1 million ($96.9 million), compared to €76.2 million ($92.3 million) in the same period last year. The growth in revenues was primarily driven by a 17.1% increase in the footwear and leather goods division, which brought in €35.9 million ($43.5 million). However, the ready-to-wear division experienced a decline of 29% year-over-year, generating €52.7 million ($63.8 million) in revenues.
Aeffe’s sales saw growth across most of the regions where it operates. The American market saw the strongest growth with a 16.7% rise in revenues, reaching $5.0 million. Sales in the company’s “Asia and Rest of the World” business grew 14.7% to €17.8 million ($21.6 million), driven by Greater China and the Middle East, which saw revenue increases of 33% and 48%, respectively. However, in its home market of Italy, revenues dropped by 2.6% to €34.3 million ($41.6 million) due to the impact of Covid-19 restrictions.
In terms of distribution channels, Aeffe’s wholesale business accounted for 81% of total quarterly revenue, generating €65.0 million ($78.8 million) – a 16.9% increase. However, the retail channel experienced a decline of 32.3% to €12.12 million ($14.7 million), while royalties rose 9.6% to €3.0 million ($3.6 million).
Aeffe achieved a net profit of €3.8 million ($4.6 million) in the first quarter of 2021, compared to just €4,000 ($4,850) in the same period the previous year. Massimo Ferretti, Aeffe’s executive chairman, expressed optimism about the company’s future performance, attributing the positive results to the gradual recovery from the pandemic and Aeffe’s focus on offering distinctive and sustainable collections.
The company recently made it to Statista’s list of 150 Sustainability Leaders in Italy, which evaluates companies based on their environmental, social, and economic sustainability practices.
Aeffe is confident about its prospects for the coming months, citing positive feedback from its fall/winter 2021-2022 sales campaign, which saw a 12% increase. The company also expects growth in its online channel and anticipates the accelerating vaccination campaign to contribute to its recovery.
Aside from its business operations, Aeffe has taken a step towards supporting public health by opening an in-house vaccination center in collaboration with the Red Cross. The center, located at Aeffe’s headquarters, will serve both Aeffe employees and large company employees in the Rimini area, with a capacity to administer 120 doses per day.
As of the end of the first quarter, Aeffe had a total of 57 directly operated stores worldwide, along with 140 franchise locations in Europe and Asia.
Sources:
– [Aeffe SpA](https://www.tradersmagazine.it/2021/05/12/aeffe-2021-tendenze-della-moda/)
– [Statista](https://www.statista.com/outlook/61877/100/fashion/italy#:~:text=In%202019%2C%20revenue%20in%20the,compared%20to%20the%20previous%20year.)
