Aeffe's sales up 4.4% in 2016, driven by Moschino and Philosophy

By

Dominique Muret

Translated by
Nicola Mira

Published
Feb 15, 2017

In 2016, Italian fashion group Aeffe reaped the rewards of its strategic repositioning of three years ago. The group is active in ready-to-wear fashion through its own brands (Alberta Ferretti, Philosophy, Moschino and Pollini for footwear) and several licences (Jeremy Scott, Cédric Charlier and the Blugirl beachwear line). In 2016 the group's sales grew by 4.4% (+4.7% excluding exchange rate adjustments) reaching €268.8 million, as indicated by the recently published preliminary annual results.

Sales in 2016 rose proportionately in all regions with the exception of Russia, where they posted a slight decrease (-0.7%): they grew 3.1% in the USA, 5.4% in Europe (excluding Russia and Italy), 5.3% in Italy – Aeffe’s main market, accounting for 45% of overall revenue - and by 3% in the rest of the world, especially thanks to a 7% jump in mainland China.

Aeffe's revenue was notably driven by the wholesale channel, which grew by 8.3% compared to 2015, reaching €201.2 million. On the other hand, as in the case of Prada, retail sales fell by 5.3%.

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The group's Executive President, Massimo Ferretti, was upbeat, and pointed to "various encouraging signs, which are expected to extend into the coming months," especially the renewed surge in tourism flows glimpsed in the last quarter.

In 2016, sales for Aeffe's ready-to-wear division, which accounts for 69% of the group's business, grew by 4.2%, while those of footwear and leather goods were restricted to a timid 0.2% rise.

The ready-to-wear segment was notably bolstered by Moschino, the group's leading label, whose €197.7 million in revenue accounted for 70% of Aeffe's sales. At constant exchange rates, sales for the Jeremy Scott-led label rose by 6.1%.

Alberta Ferretti's younger line, Philosophy, was very successful too. Lorenzo Serafini took charge of the label in October 2014, and its sales skyrocketed last year, rising 25% excluding exchange rate adjustments to €13.1 million.