Luxury Slowdown Hits Italian Group as Wholesale and Retail Channels See Double-Digit Declines
Aeffe’s financial troubles continued into 2025 with a steep 23.2 percent revenue drop in the first quarter, extending a year-long downward trend for the Italian fashion group. The slump follows a 21.3 percent revenue decline in 2024, despite a temporary boost from the 98 million euro sale of its Moschino cosmetics and fragrance licenses. Whatever short-term cushion that sale offered has largely evaporated as the wider luxury market slowdown continues to bite.
Executive Chairman Massimo Ferretti acknowledged the drag in a statement, attributing the decline to global consumption weakness across both wholesale and retail. “This situation, expected for the entire first part of the current year, has not caught us unprepared, and we are continuing to implement processes to rationalize activities and all operating costs,” he said.
The downturn was sharpest in Aeffe’s home market of Italy, where sales fell nearly 25 percent to 26.5 million euros. The wholesale channel led the contraction with a 26 percent drop, while retail fell 12 percent. Elsewhere in Europe, revenue fell approximately 21 percent to 18.9 million euros. In the Americas, revenue dipped 18 percent to 3.3 million euros, and in Asia and the rest of the world, sales declined by about 24 percent to 12.9 million euros.
Wholesale, which accounts for the bulk of Aeffe’s business at 70 percent of total revenue, dropped around 23 percent. Retail, making up just under 29 percent of the business, declined 19 percent. Even the company’s royalty income, a minor slice of the pie, plummeted over 70 percent.
Despite the grim figures, Aeffe is holding to a cautiously optimistic view of the months ahead. “We look with positivity and renewed confidence to a recovery of the retail market in the upcoming months,” said Ferretti, citing continued investment in the group’s key brands: Moschino, Alberta Ferretti, and Pollini.
The company has undergone notable creative changes that could shape its next phase. In January 2024, Adrian Appiolaza was named creative director of Moschino following the sudden passing of Davide Renne. Later that year, Alberta Ferretti stepped down from her namesake label after 44 years, passing the reins to her long-time protégé Lorenzo Serafini. Whether those shifts translate into commercial renewal remains to be seen, but Aeffe is clearly betting on creative revitalization to help steady the ship.