Aeffe's net income soars in Q1
Aeffe has started the year in style. In Q1, the Italian fashion group, active with its proprietary labels Alberta Ferretti, Philosophy, Moschino and Pollini footwear, and licensed labels like Jeremy Scott, generated a revenue of €101.6 million, equivalent to a 26.8% increase over the same period a year earlier, and a 26.5% one at constant exchange rates. Most notably, Aeffe nearly tripled his net income, which rose from €3.7 million in the first three months of 2021 to €8.9 million a year later, equivalent to 8.8% of revenue.
In Q1, all performance indicators for the group based in San Giovanni in Marignano, near Rimini, were decidedly positive. Aeffe doubled its operating income (EBIT), which increased from €7.7 million to €14.2 million in one year, while gross operating income (EBITDA) rose from €14.1 million to €20.4 million (up by 45%), equivalent to 20% of revenue. “Profitability increased more than proportionally to the increase in revenue, thanks to the combined effect of a higher percentage of full-price sales, both in the wholesale and retail channel, and a lower incidence of fixed costs, even though these were higher than in Q1 2021,” Aeffe stated in a press release.
Geographically, Aeffe’s results mirror the current global economic situation: the group slowed down in Asia, and especially in China, owing to the lockdowns imposed in several major cities, including Shanghai, due to Covid-19’s renewed spread. In Asia, which accounts for 17.3% of total revenue, sales fell by 1.2%, down to €17.6 million, compared to Q1 2021. But Aeffe grew the share of its business accounted for by the USA, now 9.5% compared to 6.7% as of December 31 2021. Sales in the country skyrocketed, growing 88.3% at constant exchange rates, to €9.6 million.
In Italy, the group's main market, accounting for 41% of total revenue, sales were worth €42.7 million, up by 24.6% “thanks to excellent results in the wholesale channel, but also in retail sales.” In Europe, excluding Italy, a region that accounts for almost a third of Aeffe’s revenue, sales soared by 37.5% to €31.5 million, again thanks to the wholesale channel, particularly in Germany and the UK.
“The first quarter of 2022 confirmed the trends of the financial year 2021, with a significant growth in revenue and a more than proportional progression in profitability. The results were obtained thanks to the good performance of all our brands and to the benefits related to the structural efficiency of the business model implemented over the last two years,” said Aeffe’s executive chairman Massimo Ferretti, who also mentioned that orders for the new collections are up by 9%, “despite the uncertainty linked to the geopolitical tensions caused by the ongoing invasion of Ukraine.”
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