Aeffe nine months profit increases to 4.9 million euros

Consolidated revenues at Aeffe, for the nine month period of 213.8 million euros (229 million dollars) increased 3.5 percent at current exchange and 3.8 percent at constant exchange rate. Net Profit for the Group increased 217 percent to 4.9 million euros (5.2 million dollars), compared to a net profit of 1.5 million euros (1.6 million dollars) in 9M 2015.

“The Group is continuing to register a good trend both in term of sales growth and a more than proportional increase in profitability. Despite the macroeconomic uncertainty and the slowdown in the retail channel, mainly due to lower tourists’ flows, we are confident for the remaining part of the year, in the light of the good results of the autumn/winter collections currently in the stores and of the orders intake for next spring/summer collections, up by 5 percent,” said Massimo Ferretti, Executive Chairman of Aeffe in the company release.

Revenues witnessed rise across segments

Revenues of the prêt-à-porter division amounted to 163.9 million euros (173 million dollars), up by 3.4 percent at current exchange and by 3.7 percent at constant exchange rates compared to 9M 2015. Revenues of the footwear and leather goods division decreased by 2.4 percent to 71 million euros (76 million dollars), before interdivisional eliminations.

Sales in Italy, amounting to 45.1 percent of consolidated sales, registered a 4.2 percent increase to 96.5 million euros (103 million dollars). At constant exchange rates, sales in Europe, contributing to 21.7 percent of consolidated sales, increased by 5.3percent. The Russian market, representing 3.5 percent of consolidated sales, increased by 4.9 percent. Sales in the United States, contributing to 8 percent of consolidated sales, posted 4.9 percent growth at constant exchange rates. In the Rest of the World, the Group’s sales totalled 46.4 million euros (49 million dollars), amounting to 21.7percent of consolidated sales, recording an increase of 0.9 percent compared to 9M 2015.

Wholesale sales grew by 7.6 percent at constant exchange rates or 7.5 percent at current exchange rates, contributing to 71.5 percent of consolidated sales. The sales at directly-operated stores (DOS), representing 25.1 percent of consolidated sales, decreased by 7.3 percent at constant exchange or 8 percent at current exchange rates, with direct negative impact on Group’s operating marginality. Royalty incomes, representing 3.4 percent recorded a 20.7 percent increase.

Ebitda of 21.3 million euros (22.8 million dollars), rose 19 percent. Profit before taxes of 10.5 million euros (11.2 million dollars), improved 4.8 million euros (5.1 million dollars), up 84 percent.

Picture:Aeffe, Alberta Ferretti