Aeffe sees profits surge 41% in first quarter
Aeffe is starting off the year in good health. The Italian fashion group, present in the ready-to-wear sector with brands Alberta Ferretti, Philosophy, Moschino and footwear brand Pollini as well as with licences for Jeremy Scott, Cédric Charlier and the Blugirl beachwear line, has generated revenue of 79,6 millions euros in the first three months of 2017, an increase of 4.4% year-on-year, the company said in a statement.
The company has benefited from the upturn in Italy, its principal market, as well as the impact of the restructuring that it has put in place over the last few years. The company has thus improved its profitability, attaining net profit of 8.1 million euros over the period, with an operational result (Ebit) of 12.5 million euros (+15 %).
It is an increase linked to its ready-to-wear segment, where the sales, led by Moschino’s turnaround, stood at 61.4 million euros (+3.5%), with footwear and accessories seeing a similar upswing of 8% to 25.4 million euros.
Executive Chairman Massimo Ferretti was pleased with the results, underlining in particular the upturn in the retail channel, above all in Europe. The 64 directly-operated stores and 175 franchised stores, whose business represents 25.1% of Aeffe sales, have in fact generated turnover of nearly 20 million euros, an increase of 9.2% in Q1 2017.
The unexpectedly strong performance on the Italian market is also of note, making up 48.2% of the total revenue, where sales have surged 15.9% over the period to 38.3 million euros.
Elsewhere, sales rose 9.1% in Russia, while they dropped 12.2% in the United States - a fall due to the slowdown of retail in American department stores, according to Aeffe – and remained stable in Europe, excluding Italy and Russia (+0.06%).
The group does not give any details on its sales in Asia, only indicating that sales have slumped by 8.6% ‘in the rest of the world.’
Moschino, the group’s flagship label, has seen its sales increase by 7% (at constant exchange rates) to more than 53.3 million euros. Philosophy, the line from Alberta Ferretti that has been under the leadership of designer Lorenzo Serafini since 2014, also demonstrated an excellent performance. Its sales surged 15% in the first quarter to 5.6 million euros, while Pollini footwear recorded growth of 13.2% to 8.4 million euros.
The net financial debt of the Italian group has decreased from 87.2 millions euros on March 31, 2016, to 64.4 million euros on March 31, 2017.
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