Aeffe: H1 results fair well on solid sales growth in all markets
Aeffe Spa -- the Italian group behind labels Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier -- recorded an increase in both profit and revenue for the first half of fiscal 2016.
Owned by Alberta Ferretti and her brother Massimo, Aeffe's net profit reached 1.4 million euros ($1.5 million), up from 35,000 euros ($41,000), on the same period last year.
Revenues jumped 7 percent to 137.8 million euros ($154.3 million), compared to 128.7 million euros ($150.5 million) recorded as a group last year.
By divisioon, ready-to-wear sales were up 7.5 percent to 106.9 million euros ($119.7 million), while footwear and leather goods declined 2.6 percent, sitting at 44.8 million euros ($50.1 million).
Meanwhile, wholesale sales grew by 14.8% at constant exchange rates, contributing to 72% of consolidated sales.
Geographically, sales in Italy amounted to 44% of consolidated sales, registering a 6% increase to 60.5 million euros. Europe contributed to 22% of overall sales, reporting a 5.7% increase, while Russia represented 3% of the market, with sales up 3.7%, "showing signs of moderate recovery compared to last year," said Aeffe, in a press release.
The United States attributed for 8% of sales, and posted the most "significant growth" - 4.3%, at constant exchange rates. The Rest of the World totalled 31.1 million euros in sales - 23% of consolidated sales - recording an increase of 9.7% compared to the same period last year. A good performance in greater China lifted the overall result, said Aeffe, posting a 27.7% rate of growth.
"We are very satisfied with the group’s positive performance, both in terms of revenues and profitability, as well as with the growth in all the key markets, especially given the continuing geopolitical uncertainty," said Massimo Ferretti, Executive Chairman of Aeffe Spa.
"The slowdown in tourism is currently impacting the retail channel, particularly in Europe, but is more than offset by the continued expansion in geographical areas, such as Greater China and United States.
"The current global context presents many challenges that we are ready to face implementing strategies focused on the distinctiveness of our brands and on the market’s evolution," he added.
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