Italy's Aeffe sees double-digit Q1 growth, Greater China booms
Aeffe has started the year in impressive fashion. The Italian group that includes labels Alberta Ferretti, Philosophy by Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier, recorded double-digit increases for all its main measures in the first quarter 2018. Revenue was €95.2 million (+20.3% at constant exchange rates), EBITDA was €20.3 million (+32%) and net income was €11.3 million (+39%).
Aeffe’s apparel sales grew 18.3% at constant exchange rates, and were worth €72.1 million while the revenue for footwear and leather goods was €32 million (+26.2%).
“The group is focused on generating constant organic growth for its proprietary brands, and the sustained increase in revenue and profitability, both in ready-to-wear and the accessories category, are proof of the quality of our design style, our operational decisions and our investments,” said Massimo Ferretti, Executive President of Aeffe S.p.A. “After the sales campaign for the Autumn/Winter 2018-19 season closed with a 12% increase, we continue to look to the future with optimism.”
Aeffe is continuing to grow in Italy, its domestic market, (accounting for 47.6% of total revenue). After posting a 20.7% increase last year, it grew 18.2% in the first quarter 2018, up to €45.3 million. The rest of Europe (accounting for 21.7% of revenue) increased by 15%, thanks chiefly to the UK, Germany and Spain.
Russia, with a share of 3% of total revenue, was also on a positive track, its sales up 12.6%. The US was the only region to record a downturn (-11%), chiefly due to the negative nationwide trend in department stores, a problem reported by other luxury brands recently with Safilo blaming it only this week for difficult US figures.
Meanwhile the rest of the world, driven by booming sales in Greater China (+67.8%), posted a 45.9% rise, accounting for 22.5% of total revenue.
In terms of distribution channels, wholesale revenue, accounting for 74.7% of Aeffe’s total, grew 24.4%, while the retail channel (22.6% of sales) was up 8.5%. Finally, royalty revenue increased by 19%, and was worth 2.6% of total revenue.
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