- Prachi Singh |
In the first nine months of 2017, Aeffe’s consolidated revenues amounted to 235 million euros (273 million dollars), a 9.9 percent increase at current exchange and 10 percent at constant exchange rates. Revenues of the prêt-à-porter division amounted to 179.9 million euros (209 million dollars), up by 9.8 percent both at current and constant exchange rates compared with 9M 2016, while revenues of the footwear and leather goods division increased by 12.8 percent, 80 million euros (93 million dollars).
Commenting on the company’s results, Massimo Ferretti, Executive Chairman of Aeffe said in a press release: “We positively look forward in the light of the results of the first nine months of the year, both in terms of revenue growth and more than proportional increase of profitability, also thanks to a 15 percent increase of the Spring/Summer 2018 orders’ backlog. These results are very encouraging and, especially, confirm the validity of our long-term strategy."
Aeffe’s performance across markets
In 9M 2017 sales in Italy, amounting to 49.3 percent of consolidated sales, increased 20.2 percent to 116 million euros (135 million dollars), due to organic growth both in wholesale and in the retail channel. At constant exchange rates, sales in Europe, contributing to 20.8 percent of consolidated sales, registered a 5.8 percent growth.
The Russian market, representing 3 percent of consolidated sales, posted a decrease of 0.2 million euros (0.23 million dollars) or 3 percent compared to the correspondent period of last year. Sales in the United States, contributing to 6.3 percent of consolidated sales, posted a decrease of 13.4 percent at constant exchange rates.
In the rest of the world, the group’s sales totalled 48.2 million euros (56 million dollars), amounting to 20.5 percent of consolidated sales, recording an increase of 3.8 percent at constant exchange rates compared to 9M 2016, due to 16 percent sales growth in China.
By distribution channel, wholesale sales grew by 7.5 percent at constant exchange and 7.6 percent at current exchange rates, contributing to 70 percent of consolidated sales. The sales of directly-operated stores (DOS) increased by 18.4 percent at constant exchange and 18 percent at current exchange rates and contributed to 26.9 percent of consolidated sales. Royalty incomes decreased by 0.4 percent.
The group has defined a plan for about 10 new franchise openings by the end of 2017 to strengthen the presence of its own brands in Asia.
Aeffe reports improved profitability
In 9M 2017 the group posted an improvement in margins; consolidated Ebitda was equal to 30.4 million euros (35.3 million dollars), a 9.1 million euros (10 million dollars) or 42.9 percent increase. The company said, improvement in profitability was mainly driven by sales growth of both divisions. Consolidated Ebit was equal to 21.6 million euros (25 million dollars), a 76.9 percent increase over last year.
Profit before taxes amounted to 18.6 million euros (21 million dollars), an 8.1 million euros (9.4 million dollars) or 77.4 percent increase. Net result of the group was equal to 11.9 million euros (13 million dollars), a 7 million euros or 143.6 percent improvement.
Picture:Alberta Ferretti website