Aeffe triples net income over nine months
Italian fashion group Aeffe is on a roll, and is reaping the rewards of the strategic repositioning effected two years ago. The group operates in the ready-to-wear sector through its own brands (Alberta Ferretti, Philosophy, Moschino and Pollini shoes) and several licences (Jeremy Scott, Cédric Charlier and the Blugirl beachwear line). As of 30th September 2016, its net income has skyrocketed by 217%, growing from €1.5 million a year ago to €4.9 million this year!
The group has greatly improved its profitability, recording for the period in question an EBIT of €12.2 million (+46%) and an EBITDA of €21.3 million (+18.6%), equivalent to 10% of revenue.
The group stated in a press release that the growth was spearheaded by the ready-to-wear division, whose sales, driven by the recovery of Moschino, reached €164 million (+3.4%), while accessories sales fell by 2.4%, down to €71 million.
In the first nine months of the year, Aeffe generated a total revenue of €213.8 million, equivalent to a 3.5% increase compared to the same period last year (+3.8% at constant exchange rates).
Sales have steadily grown across all regions: in Europe excepting Russia (+4.5%), in Russia itself, where the group made up lost ground by growing 4.9%, in the USA (+4.8%) and also in Italy (+4.2%), which remains Aeffe's main market, accounting for 45.1% of its total revenue.
Executive President Massimo Ferretti is happy about the growth "both in terms of margin and revenue" and stated he is confident for the remainder of the year, "despite the macroeconomic uncertainty and the retail channel slow-down, chiefly due to the decline in tourism."
Aeffe's net financial indebtedness has decreased from €80.5 million as of 31st December 2015 to €77.6 million as of 30th September 2016.
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