Aeffe Group reorganization weighs on half-year results

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The reorganization of Italian fashion company Aeffe is weighing on the Group’s results. Executive Chairman Massimo Ferretti, however, supports the strategies implemented for the fashion group and remains confident in its future growth and development.

 

Last Friday, Aeffe Spa announced revenues down 7.7% to 162.9 million euros in the first half of 2023. Despite this decline, Massimo Ferretti, the group’s executive chairman, said he was “satisfied with the results of the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand in the Chinese market”.

 

Sales in the Italian market, which account for 42% of total sales, fell by 4.4% year-on-year to 68.2 million euros.

 

In the first half, consolidated adjusted EBITDA stood at €10.4 million, barely half the €20.9 million recorded in the first half of 2022. Consolidated adjusted EBIT turned negative at 6 million euros, compared with 7 million euros in 2022.

 

The consolidated net loss thus amounted to 11.7 million euros, compared with a profit of 2.9 million euros in 2022. Aeffe shares are currently down 1.7% at EUR 1.17.

 

Ferretti said on Friday, commenting on the first-half results, that Aeffe’s strategic repositioning will enable it “in the short term to be much more competitive on the global market”.

 

Major reorganization

 

In 2021, Aeffe acquired Moschino’s distribution in mainland China, underlining the growing importance of this market for the brand. The acquisition involved some twenty stores, operated for 10 years by Scienward Fashion and Luxury (Shanghai). In addition to Moschino, Aeffe also owns the Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini brands.

 

Massimo Ferretti referred to the strong performance of all three brands, while highlighting Moschino’s 40th anniversary celebration show, which will take place in Milan during fashion week on September 21. The show marks “a new stage in the brand’s repositioning and renovation project, which has significant development potential”.

 

The event is designed to pay tribute to founder Franco Moschino. Designers Carlyne Cerf de Dudzeele, Katie Grand, Gabriella Karefa-Johnson and Lucia Liu will be the main creative forces behind this season’s collection, each creating 10 contemporary looks inspired by the late designer’s works.

 

As for Moschino, the name of the successor to the last creative director, Jeremy Scott, who left the brand in March after 10 years in business, has yet to be revealed.

 

 

“We are approaching the second half of the year with constant attention to the markets and our customers, but we are confident of returning to satisfactory growth very soon”, concluded Massimo Ferretti.

 

In addition, the company announced that Luca Gori, Managing Director of the Aeffe beachwear and underwear group, is stepping down from his position by mutual consent on July 31, following a discussion on the company’s organizational structure.

 

Read also >Jeremy Scott leaves Moschino

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The reorganization of Italian fashion company Aeffe is weighing on the Group’s results. Executive Chairman Massimo Ferretti, however, supports the strategies implemented for the fashion group and remains confident in its future growth and development.

 

Last Friday, Aeffe Spa announced revenues down 7.7% to 162.9 million euros in the first half of 2023. Despite this decline, Massimo Ferretti, the group’s executive chairman, said he was “satisfied with the results of the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand in the Chinese market”.

 

Sales in the Italian market, which account for 42% of total sales, fell by 4.4% year-on-year to 68.2 million euros.

 

In the first half, consolidated adjusted EBITDA stood at €10.4 million, barely half the €20.9 million recorded in the first half of 2022. Consolidated adjusted EBIT turned negative at 6 million euros, compared with 7 million euros in 2022.

 

The consolidated net loss thus amounted to 11.7 million euros, compared with a profit of 2.9 million euros in 2022. Aeffe shares are currently down 1.7% at EUR 1.17.

 

Ferretti said on Friday, commenting on the first-half results, that Aeffe’s strategic repositioning will enable it “in the short term to be much more competitive on the global market”.

 

Major reorganization

 

In 2021, Aeffe acquired Moschino’s distribution in mainland China, underlining the growing importance of this market for the brand. The acquisition involved some twenty stores, operated for 10 years by Scienward Fashion and Luxury (Shanghai). In addition to Moschino, Aeffe also owns the Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini brands.

 

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The reorganization of Italian fashion company Aeffe is weighing on the Group’s results. Executive Chairman Massimo Ferretti, however, supports the strategies implemented for the fashion group and remains confident in its future growth and development.

 

Last Friday, Aeffe Spa announced revenues down 7.7% to 162.9 million euros in the first half of 2023. Despite this decline, Massimo Ferretti, the group’s executive chairman, said he was “satisfied with the results of the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand in the Chinese market”.

 

Sales in the Italian market, which account for 42% of total sales, fell by 4.4% year-on-year to 68.2 million euros.

 

In the first half, consolidated adjusted EBITDA stood at €10.4 million, barely half the €20.9 million recorded in the first half of 2022. Consolidated adjusted EBIT turned negative at 6 million euros, compared with 7 million euros in 2022.

 

The consolidated net loss thus amounted to 11.7 million euros, compared with a profit of 2.9 million euros in 2022. Aeffe shares are currently down 1.7% at EUR 1.17.

 

Ferretti said on Friday, commenting on the first-half results, that Aeffe’s strategic repositioning will enable it “in the short term to be much more competitive on the global market”.

 

Major reorganization

 

In 2021, Aeffe acquired Moschino’s distribution in mainland China, underlining the growing importance of this market for the brand. The acquisition involved some twenty stores, operated for 10 years by Scienward Fashion and Luxury (Shanghai). In addition to Moschino, Aeffe also owns the Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini brands.

 

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