Aeffe first half net profit soars 214 percent

Aeffe Group’s consolidated revenues for the first half of 150 million euros (177 million dollars) increased 8.8 percent at current exchange and 8.6 percent at constant exchange rates. Net result of the group was equal to 4.6million euros (5.4 million dollars), a 3.1million euros (3.6 million dollars) or 214 percent improvement over the first half of 2016.

Commenting on the first half trading Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a media release: “We are very satisfied with the group’s results of the First Half of 2017 achieved thanks to the positive performance of all proprietary brands, along with the progressive recovery of the retail channel, especially in Europe. For the current year, we aim to confirm the growth trend of sales and more than proportional progression of profitability.”

Aeffe’s geographical performance in H1

In 1H 2017 sales in Italy, amounting to 48 percent posted a 19 percent increase to 72.1million euros (85 million dollars). At constant exchange rates, sales in Europe, contributing to 21.3 percent of consolidated sales, registered a 6.6 percent growth. The Russian market, representing 3percent of consolidated sales, however decreased by 5.9 percent.

Sales in the United States, contributing to 6.5 percent of consolidated sales, posted a decrease of 14.6 percent at constant exchange rates in 1H 2017. This change, the company said, was mainly due to the slowdown in sales in the department stores. In the rest of the world, the group’s sales totalled 31.7million euros (37.5 million dollars), amounting to 21.1 percent of consolidated sales, recording an increase of 1.2 percent compared to 1H 2016.

By distribution channel, wholesale sales grew by 5.8 percent at constant exchange and 6.1 percent at current exchange rates, contributing to 70.2 percent of consolidated sales. The sales of the company’s directly-operated stores (DOS) increased by 18.1percent at constant exchange and 17.9 percent at current exchange rates and contributed to 26.7percent of consolidated sales. Royalty incomes increased by 0.6 percent and represented 3.1 percent of consolidated sales.

The group has defined a plan for about 10 new franchise openings by the end of 2017 to strengthen the presence of its own brands in Asia.

Aeffe reports improved profitability in H1

Ebitda of 15.5million euros (18.3 million dollars) was 10.3 percent on consolidated sales compared to 12.2million euros (14.4 million dollars) in 1H 2016 or 8.9 percent on consolidated sales, with a 3.3million euros (3.9 million dollars) or 26.7 percent improvement.

The improvement in profitability, the company said, was mainly driven by sales growth of both divisions. Ebitda of the prêt-à-porter division amounted to 11.4million euros (13.4 million dollars), representing 9.8 percent of sales, compared to 8.5million euros (10.06 million dollars) in 1H 2016, posting a 2.9 million euros (3.4 million dollars) or 33.7 percent increase. Ebitda of the footwear and leather goods division amounted to 4.1million euros (4.8 million dollars), a 0.4million euros (0.47 million dollars) or 10.6 percent increase.

Consolidated Ebit was equal to 9.6million euros (11.3 million dollars), with a 3.5million euros (4.1 million dollars) or 56 percent increase. Due to the improvement in operating profit, in 1H 2017 Profit before taxes amounted to 7.4million euros (8.7 million dollars), a 2.6million euros (3.08 million dollars) or 55 percent increase.

Picture:Alberta Ferretti website

 

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