Italy’s Aeffe Spa’s profit at .7 mn in 9M 2024 despite revenue drop

Italy’s Aeffe Spa’s profit at $38.7 mn in 9M 2024 despite revenue drop

Fashion



Italy’s Aeffe Spa’s profit at $38.7 mn in 9M 2024 despite revenue drop

Aeffe Spa, an Italy-based luxury group, has reported a net profit of €35.2 million (~$38.72 million) in nine months (9M) ended September 30, 2024, compared to a loss of €17.8 million in the same period last year. The company’s revenue was €207.8 million (~$219.2 million), a decrease of 17.6 per cent year-over-year (YoY) at constant exchange rates (-17.8 per cent at current exchange rates).

The company’s consolidated EBITDA touched €90.9 million (~$95.92 million) (43.8 per cent of revenues) compared to €12.2 million in 2023. Segment-wise, revenues of the pret-a-porter division amounted to €139.9 million, recording a decrease of 17.5 per cent YoY at current exchange rates compared to 2023 (-17.2 per cent at constant exchange rates). Revenues of the footwear and leather goods division amounted to €86.7 million, a decrease of 22.6 per cent YoY, at constant and current exchange rates compared to the same period of 2023 (-22.7 per cent at constant exchange rates), Aeffe said in a press release.

Aeffe Spa has reported a net profit of €35.2 million (~$38.72 million) in 9M 2024, reversing a €17.8 million loss in 2023.
Revenue fell 17.6 per cent YoY to €207.8 million.
EBITDA soared to €90.9 million (~$95.92 million) (43.8 per cent margin).
All regions saw turnover declines, led by wholesale (-20.3 per cent).
Strategic efforts focus on brand reorganisation amid global consumption slowdowns.

Region-wise, Italy’s turnover was €89.5 million (~$94.44 million) in 9M 2024, a decrease of 17.1 per cent YoY. The wholesale channel recorded a contraction of 23 per cent, while the retail channel decreased by 7 per cent compared to the first nine months of 2023. In European region (excluding Italy), the turnover dropped by 18.3 per cent YoY to €63.6 million compared to €77.9 million in 9M 2023. The decrease is linked to specific countries and markets at both wholesale and retail levels.

The Asia and Rest of the World (RoW) region recorded a turnover of €42.8 million, down by 19.2 per cent YoY from €52.9 million in 9M 2023. On a constant exchange rate basis, the decline was slightly lower at 18.5 per cent YoY, indicating regional variations. In the Americas, the turnover was €11.9 million, a decline of 15.3 per cent YoY from €14.0 million in 9M period in 2023 and at constant exchange rates, the decrease was marginally less at 15.1 per cent.

By distribution channel, the revenues of the wholesale channel, which represents 66.2 per cent of turnover (€137.6 million), recorded a decrease by 20.3 per cent at constant exchange rates. The revenues of the retail channel, which represents 30.3 per cent of sales (€63.0 million), showed a decrease by 12.3 per cent at constant exchange rates compared to the corresponding period of the previous year.

The revenues for royalties, which represent 3.5 per cent of consolidated turnover (€7.2 million), decreased by 7.4 per cent compared to the same period of 2023.

“The slowdown in global consumption in the fashion and luxury sectors had an impact on the performance of our group in the first nine months of 2024. We are aware of the complexities of this historical moment, also characterised by significant political and social instability, but the strategic decisions we have made over the last few months and the finalised operations reflect a profound awareness of the potential we know we have within our structure. I am sure that the reorganisation of the Moschino brand and the rebranding of the Alberta Ferretti label will open new interesting scenarios,” said Massimo Ferretti, executive chairman of Aeffe Spa.

The balance sheet and financial position of the Group on September 30, 2024, shows a net equity of €114.6 million (vs €79.2 million on December 31, 2023) and a financial debt of €72.3 million net of the IFRS 16 effect (€152.5 million on December 31, 2023). The net working capital amounted to €93.6 million (34.2 per cent of revenues on an annual basis) down compared to 113.5 million of September 30, 2023 (34.6 per cent of revenues on an annual basis). Capex investments made in 9M of 2024, equal to €2.6 million, mainly refer to works on third party assets and purchases for software. Disinvestments carried out in the first nine months of 2024 mainly refer to the sale of class 3 of the Moschino brand, concluded the press release.

Fibre2Fashion News Desk (SG)



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