Aeffe’s revenue, margin slump in Q1
In Q1 2023, Italian fashion group Aeffe recorded a consolidated revenue of €93.2 million, down 8.4% at constant exchange rates compared to last year. Adjusted consolidated EBITDA was €12.3 million, or 13.2% of revenue, down from the €20.4 million recorded in 2022, when it was 20.1% of revenue.
“The results of the first quarter of the year were the natural outcome of the strategic reorganisation plan launched by Aeffe Group in 2022, which we are convinced will bring benefits already in the medium term,” said Massimo Ferretti, executive president of Aeffe Spa.
“The rationalisation of the Moschino brand’s lines and the acquisition of direct control of its distribution on the Chinese market certainly had an effect on Q1 results, but we believe that these moves will be instrumental in the growth and development for both the brand and the group. At the same time, the growth reported by the Alberta Ferretti and Philosophy by Lorenzo Serafini brands and above all by the Pollini brand, as well as the positive performance of the Moschino retail network in Asia, make us confident about the group's future consolidation and growth opportunities starting from 2024,” added Ferretti.
The revenue of the group’s ready-to-wear division was €58.3 million, down 14% at constant exchange rates compared to 2022, while revenue for the footwear and leather goods division was on par with last year, at €46.1 million.
Sales in Italy, which accounted for 45.9% of total revenue, were stable compared to 2022, at €42.7 million. The wholesale channel in Italy lost 4%, while retail sales were up 35%. Revenue in the rest of Europe, which accounted for 29.4% of the total, fell by 13.1%, to €27.4 million. Retail sales in the region were down 11%, chiefly due to the temporary closure of Moschino's London store, for renovation work that ended in March 2023. Sales in the USA (5.9% of total revenue) slumped by 45.1%, while the result in Asia and the rest of the world was on par with 2022, with a revenue of €17.5 million (18.8% of the total).
Overall, revenue generated in the wholesale channel, which accounted for 71.8% of Aeffe’s total revenue and was worth €66.9 million, fell by 14.5%, while retail revenue (25.7% of the total) was up by 22.5% at €23.9 million. The best retail result was achieved in Asia, with a 91% increase, thanks to a change to the distribution model in China. Finally, royalty revenue was down 39.9% compared to the same period in 2022.
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