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Aeffe's FY17 revenues rise 11.6 percent

By Prachi Singh

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Management

According to the preliminary data, in the year 2017 Aeffe Group registered sales of 312.6 million euros (383.6 million dollars) compared to 280.7 million euros (344.5 million dollars) in 2016, an 11.6 percent increase at constant exchange and 11.4 percent at current exchange rates. The company said, revenues of the prêt-à-porter division amounted to 239.8 million euros (294.3 million dollars), up by 11.4 percent at constant exchange and 11.1 percent at current exchange rates compared to 2016. Revenues of the footwear and leather goods division increased by 12.8 percent to 108.2 million euros (132.8 million dollars) both at constant and current exchange rates.

Commenting on the results, Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a media statement: “The trend of 2017 reflects the strategy of constant attention to quality and to enhancement of our brands’ international positioning. Therefore we are very satisfied with the results achieved in terms of revenues, with double-digit growth of all the group’s proprietary brands. In light of 15 percent for our S/S 2018 sales campaign and the positive trend for the A/W 2018 pre-collections, we look to the future with renewed optimism.”

Aeffe’s performance across geographies

In 2017, sales in Italy, amounting to 48.7 percent of consolidated sales, registered a positive increase marking a 20.7 percent growth to 152.1 million euros (186.7 million dollars) compared to 2016, driven by organic growth both in wholesale and in the retail channel, which both benefited from local customers and high-end tourist flows. At constant exchange rates, sales in Europe, contributing to 21.7 percent of consolidated sales, increased by 13.6 percent, driven especially by the good performance in UK, Germany and France. Sales data, the company added, were positive both for the directly operated stores channel and for the wholesale channel.

The Russian market, Aeffe said, representing 2.9 percent of consolidated sales, reported a constant trend compared to last year, showing good signs of recovery in the last quarter of the year. Sales in the United States, contributing to 6 percent of consolidated sales, posted in the period a decrease of 17.5 percent at constant exchange rates. This change was mainly due to the slowdown in sales in the department stores. In the rest of the world, the group’s sales totalled 65 million euros (79.8 million dollars), amounting to 20.8 percent of consolidated sales, recording an increase of 3.7 percent at constant exchange rates compared to 2016, driven by positive trend in Greater China, which posted a 16.5 percent growth.

By distribution channel, in 2017, wholesale sales grew by 9 percent at constant exchange and 8.9 percent at current exchange rates, contributing to 70.1 percent of consolidated sales. The sales of directly-operated stores (DOS), representing 26.7percent of consolidated sales, showed a solid progression posting an 18.9 percent increase at constant exchange and 18.4 percent at current exchange rates, compared with 2016. The company further added that royalty incomes, representing 3.2 percent of consolidated sales, recorded an 11.4 percent increase compared to 2016.

Picture:Alberta Ferretti website

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