The Italian group at the helm of Moschino, Alberta Ferretti, Philosophy by Lorenzo Serafini and Pollini, reported sharply declining sales and accentuated losses in the first quarter of 2024. The transformation process of the brands, and of Moschino in particular, explains this poor start.
The first quarter of 2024, which ended on March 31, was not a good one for the Italian Aeffe Group. The owner of fashion brands Moschino, Alberta Ferretti, Philosophy by Lorenzo Serafini and Pollini shoes, announced on Monday May 10 a sharp drop in sales and increased losses for the start of 2024.
Listed on the Euronext Star segment of the Euronext Milan market, Aeffe shares fell by 2.1% to 0.84 euro on Friday.
In more detail, the group’s consolidated sales fell by 13.4% at constant exchange rates (-14.0% at current exchange rates) to 80.2 million euros. Losses rose from 300,000 euros in the first three months of 2023 to 5.6 million euros in 2024.
Consolidated Ebitda fell to 6.3 million euros (7.9% of sales) in the first three months of 2024, compared with 11.5 million in the first quarter of 2023 (12.4% of sales).
Results in line with Group expectations
Massimo Ferretti, Group Executive Chairman, nevertheless refers to “results in line” with the Group’s “expectations”, which stem “not only” from the “global slowdown in the wholesale market”, but also from the Group’s “transformation process, particularly with regard to the Moschino brand.”
Sales of Moschino, Aeffe’s flagship brand, fell by 11.9% at constant exchange rates, to 59.9 million euros. But the group’s other labels also saw double-digit sales declines: – 22.8% to 5.6 million euros for Alberta Ferretti, -11.3% to 5.3 million euros for Philosophy and -14.4% to 8.9 million euros for Pollini.
Adrian Appiolaza well received
With regard to its flagship brand, Moschino, the CEO also explained that “the beginnings of the brand’s new creative direction, entrusted to Adrian Appiolaza (who arrived last January, following the sudden death of Davide Renne, a few months after his appointment editor’s note), have received a very positive response, which we hope to take full advantage of with the pre-spring 2025 collection, to be unveiled at a mixed show during Milan Men’s Fashion Week in June”.
Geographically, only Asia (and the rest of the world), which accounted for 21.3% of the Group’s business, hardly declined at all. Sales fell very slightly, from 17.5 million euros to 17.1 million euros between the first quarters of 2023 and 2024.
On the other hand, in its home market of Italy, by far its biggest market, sales fell by 17.6% to 35.2 million euros (almost 44% of total sales).
In the rest of Europe, sales fell by 12.7% to 24 million euros.
In the United States, sales fell even more dramatically (-26.6%) to 4 million euros.
Optimistic in spite of everything
In terms of distribution channels, wholesale, Aeffe’s main channel (69.4% of sales) fell more (-16.6% at constant exchange rates to 55.7 million euros) than retail (27.6% of total sales), down “only” 5.9% to 22.1 million euros. Royalty income (3% of consolidated sales), on the other hand, remained stable at 2.4 million euros.
Despite this poor start to 2024, Massimo Ferreti remains optimistic. He hopes “that the international instability that characterized last year will subside, allowing markets that are of paramount importance to our Group to rebound.”
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Read also > MOSCHINO: ADRIAN APPIOLAZA TAKES THE REINS OF STYLE
Featured Photo: © Moschino
