Aeffe annual sales rise 7 percent but net profit falls

Aeffe having brand names such as Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier under its fold, said that in 2015 consolidated revenues amounted to 268.8 million euros (298.7 million dollars) representing a 7 percent increase at current exchange rates and 5.1 percent at constant exchange rates. However, net profit was 1.5 million euros (1.6 million dollars), compared to 2.7 million euros (3 million dollars) in 2014, with a 1.2 million euros decrease (1.3 million dollars).

“During 2015 the Group has been strongly committed to outlining growth strategies for the long-term profitability, through investments in key areas, such as brand portfolio, marketing, advertising and retail channel. Despite macroeconomic uncertainty, we are therefore optimistic for the future, in the light of the positive trend registered in the first two months of the year and of the good feedbacks by the latest collections recently presented during the different fashion weeks,” said Massimo Ferretti, Executive Chairman of Aeffe Spa.

Sales by product categories and geographies

Revenues of the prêt-à-porter division amounted to 207.2 million euros (230.2 million dollars), up by 7.8 percent at current exchange rates and by 5.5 percent at constant exchange rates compared to 2014. Revenues of the footwear and leather goods division increased by 11.4 percent.

In 2015, sales in Italy, amounting to 44.5 percent of consolidated sales, registered a very positive trend compared to 2014, posting a 5.4 percent increase. At constant exchange rates, sales in Europe, contributing to 21.1percent of consolidated sales, increased by 0.5 percent. The Russian market, representing 3.4 percent of consolidated sales, declined by 44.8 percent, solely due to current difficulties of the domestic economic situation, which affected all Group’s brands.

Sales in the United States, contributing to 8.3 percent of consolidated sales, posted growth of 18.1 percent at constant exchange rates. Japanese sales, contributing to 2.5 percent of consolidated sales, registered a 2.8 percent decrease, due to a slowdown in wholesale channel. In the Rest of the World, the Group’s sales increased 26.1percent at constant exchange rates compared to 2014, on the back of excellent performance in Greater China, which posted a 72 percent growth.

By distribution channel in 2015, wholesale sales grew by 7 percent at constant exchange rates and 8.8 percent at current exchange rates), contributing to 69 percent of consolidated sales. The sales of directly-operated stores (DOS) increased by 4.2 percent at constant exchange rates and 6.4 percent at current exchange rates and contributed to 28 percent of consolidated sales. Royalty incomes decreased by 20.3 percent compared to the previous year and represented 3 percent of consolidated sales. This trend reflects the weak performance registered by the minor licenses under Moschino brand.

In 2015 consolidated Ebitda was equal to 19.3 million euros (21.4 million dollars), compared to 25.7 million euros (28.5 million dollars) in 2014, with a 6.3 million euros (7 million dollars) or 24.7 percent decrease, related to the prêt-à- porter division. Consolidated Ebit declined 6.1million euros (6.7 million dollars) as a reflection of the reduction in Ebitda.