Aeffe starts the year in style. The Italian fashion group, active through its own brands (Alberta Ferretti, Philosophy, Moschino and Pollini shoes) and licenses (Jeremy Scott, etc.), achieved a turnover of 101.6 million euros in the first quarter, an increase of 26.8% (up 26.5% at constant exchange rates) compared to the same period last year. Above all, it succeeded in almost tripling its net profit. One year later, net sales amounted to 8.9 million euros, or 8.8 % of turnover.
During the period, the company from San Giovanni in Marignano, near Rimini, saw all its performance indicators soar. It doubled its operating profit (Ebit) from 7.7 million to 14.2 million in one year, while gross operating profit (Ebitda) rose from 14.1 million euros to 20.4 million (up 45%), representing 20% of turnover.
«The margin has increased more than proportionally to the increase in revenues, thanks to the combined effect of a higher percentage impact of full-price sales, both in the wholesale and retail channels, and a lower impact of fixed costs, albeit higher than in the first quarter of 2021,» the company said in a statement.
Geographically, Aeffe’s results reflect the current economic situation, with a slowdown in Asia, and especially in China, due to the confinement in several major cities, including Shanghai, because of the spread of Covid-19. In Asia, which accounts for 17.3% of total sales, sales fell by 1.2% to €17.6 million compared with the first quarter of 2021. On the other hand, in the Americas, the group increased its market share, as it constitutes 9.5 % of its business compared with 6.7 % at December 31, 2021. Its sales soared (up 88.3 % at constant exchange rates) to €9.6 billion.
In Italy, its largest market, which accounts for 41 % of total revenues, sales amounted to €42.7 million, up 24.6 % «thanks to excellent wholesale and retail results.» In Europe (excluding Italy), which accounts for almost a third of Aeffe’s turnover, sales soared by 37.5 % to 31.5 million euros, again thanks to the wholesale channel, especially in Germany and the United Kingdom.
«The first quarter of 2022 confirmed the trends of 2021, with significant revenue growth and a more than proportional increase in profitability. These results were achieved thanks to the good performance of all our brands, as well as the benefits generated by the structural efficiency of the business model implemented in the last two years,» commented Aeffe CEO Massimo Ferretti, referring to orders for new collections that increased by 9%, «despite the uncertainty linked to the geopolitical tensions of the ongoing conflict in Ukraine.»