Aeffe reports H1 revenue growth, but net profit narrows

Luxury fashion group Aeffe has reported a double-digit increase in revenue in the first half of the year.

The group, whose portfolio includes brands Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini, and Pollini, posted revenue of 176.5 million euros, up 13.2 percent - or up 13.9 percent at constant exchange rates.

Breaking it down by division, prêt-à-porter revenue was up 13.7 percent to 120.2 million euros, while footwear and leather goods revenue increased 17.6 percent to 80.2 million euros.

The group reported a narrowing net profit of 2.9 million euros in the first half, compared to a profit of 13.3 million euros a year earlier, while its EBITDA was 20.9 million euros, up slightly from 20.1 million euros.

Aeffe said it continued to perform particularly well in the US market, where sales jumped 39.5 percent.

In the group’s home market of Italy, revenue was up 21.5 percent, while in wider Europe it was up 15.9 percent.

China market impacts revenue

On a less bright note, revenue in Asia and the rest of the world was down 9.5 percent, driven by a drop in China linked to the continued impact of Covid restrictions, as well as the group’s decision to take control of its retail distribution in the market.

Aeffe executive chair Massimo Ferretti said in a statement: “First half results reflect the effective business model of the Aeffe group and the appreciation for our collections, with a significant growth in sales of all our brands in the different sales channels, with a strong progression especially in retail.

“We are therefore satisfied with the group's performances, as well as for the evolution of the new strategic direction of Moschino and the completion of the project related to the direct management of the distribution on the Chinese market, with the related benefits expected already in the coming months.”

Looking ahead, Ferretti said the group continues to “carefully monitor the challenging market context, focusing our efforts on a path of constant and sustainable growth, both in the ready-to-wear and accessories segments, together with an expansion of our geographical presence in high-potential markets, including Greater China and the US”.