American Sales Dipped 29 Percent Contributing to a 7.7 percent Drop in Revenue for the 1st Half
Aeffe, the fashion group that includes brands like Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini, and Pollini, has faced challenges during its strategic reorganization, resulting in a 7.7 percent decrease in revenues for the first half of 2023 compared to the same period last year. However, executive chairman Massimo Ferretti stands behind the company’s strategies and is optimistic about its future growth and development.
The revenue decline is partly attributed to the transition to a direct distribution model for the Moschino brand in mainland China, which Aeffe took control of in 2021. Despite the drop in overall revenues, the company expressed satisfaction with the performance of its retail channel, particularly in the Chinese market.
Ferretti emphasized the strategic repositioning of Aeffe and its brands, highlighting the celebratory fashion show for the 40th anniversary of Moschino scheduled for Milan Fashion Week on September 21. The event will pay tribute to the brand’s founder, Franco Moschino, and showcase a collection inspired by his works. Renowned stylists Carlyne Cerf de Dudzeele, Katie Grand, Gabriella Karefa-Johnson, and Lucia Liu will take the lead in curating this season’s collection, crafting 10 contemporary looks each inspired by the timeless works of the late designer. Their creative vision aims to pay homage to the designer’s legacy and infuse the collection with a fresh and captivating perspective.
The company has experienced a net loss of 11.7 million euros for the first six months of 2023, compared to a net profit of 2.9 million euros in the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined by half, standing at 10.4 million euros.
The retail channel showed promising growth, up by 19 percent, while the wholesale channel declined by 14.7 percent, mainly affected by the American market. Sales in Italy decreased by 4.4 percent, but Aeffe highlighted the excellent results of its retail channel in the country.
In America, sales experienced a significant decline of 29.4 percent, amounting to 10.1 million euros, resulting in a 6.2 percent impact on the overall turnover. This downturn was influenced by a widespread slowdown in the consumption of luxury goods in the region.
In the Asian and Rest of the World market, revenues climbed by 9 percent, with the change in distribution for the Moschino brand in Greater China gradually stabilizing and showing improved performance.
Overall, Aeffe remains positive about its future and will continue to focus on its strategic initiatives to enhance competitiveness in the global market and achieve long-term growth.