Aeffe improves sales and profitability in the first half

In the First Half of 2018, consolidated revenues at Aeffe Spa amounted to 171.1 million euros (200.4 million dollars), an increase of 14.1 percent at current exchange and 15 percent at constant exchange rates. The Group’s consolidated Ebitda was equal to 21 million euros (24.6 million dollars), compared to 15.5 million euros (18 million dollars) in 1H 2017, a 5.5 million euros (6.4 million dollars) or 35 percent increase. Due to the improvement in operating profit, Aeffe added, profit before taxes amounted to 13.9 million euros (16.2 million dollars), an increase of 88 percent. Net result of the Group increased to 8.3 million euros (9.7 million dollars), a 3.7 million euros (4.3 million dollars) or 79 percent improvement.

Commenting on the company’s first half trading, Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a media statement: “The long-term development and investment strategy reconfirms to be effective whilst sustainable, both in terms of an increase in sales and out of proportion growth in profitability. We are therefore optimistic for 2018 and, in light of the orders’ backlog of the pre-collections of the spring/summer 2019 season, we are confident also for the next year".

Both prêt-à-porter and footwear divisions post revenue and profit growth

Revenues of the prêt-à-porter division, the company said, amounted to 131.7 million euros (154.3 million dollars), up by 13.2 percent at current exchange and 14.3 percent at constant exchange rates. Revenues of the footwear and leather goods division increased by 15.4 percent, equal to 58.1 million euros (68 million dollars).

Aeffe said, the improvement in profitability was mainly driven by sales growth of both divisions. Ebitda of the prêt-à-porter division amounted to 14.3 million euros (16.7 million dollars), a 2.9 million euros (3.4 million dollars) increase over the last year’s first half. Ebitda of the footwear and leather goods division amounted to 6.7 million euros (7.8 million dollars), a 2.6 million euros (3 million dollars) increase. Consolidated Ebit was equal to 14.5 million euros (16.9 million dollars), a 4.9 million euros (5.7 million dollars) or 39 percent increase over last year.

Financial highlights of Aeffe’s first half

In 1H 2018 sales in Italy rose 12.7 percent to 81.2 million euros (95 million dollars). At constant exchange rates, sales in Europe, registered a 13.4 percent growth driven by good performance in the UK, Germany, France and Eastern Europe. The Russian market, increased by 13.9 percent, showing a good recovery compared to the last year. Sales in the United States, increased 1.6 percent at constant exchange rates in 1H 2018. In the Rest of the World, the Group’s sales totalled 39.6 million euros (46.3 million dollars), an increase of 26 percent at constant exchange rates due to positive trend in Greater China which posted a 41 percent growth.

By distribution channel, in 1H 2018, wholesale sales grew by 18.7 percent at constant exchange and 17.7 percent at current exchange rates, contributing to 72 percent of consolidated sales. The sales in directly-operated stores (DOS) increased by 6.1 percent at constant exchange and 5.4 percent at current exchange rates) and contributed to 25 percent of consolidated sales.

Picture:Alberta Ferretti website