Dive Brief:
- Aeffe SpA posted a first quarter revenue decline of 23.2% to 61.7 million euros, or about $68.6 million, according to a Friday earnings release.
- The company, which owns Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini, reported revenue of 38.7 million euros in its ready-to-wear division, an almost 30% decline year over year. The footwear and leather goods division was down more than 18% to 27.1 million euros.
- Net losses widened to 10.1 million euros, compared to a net loss of 5.6 million in the first quarter last year. Meanwhile, consolidated EBITDA was minus 1.5 million euros, versus a positive EBITDA of 6.3 million for the same period in 2024.
Dive Insight:
Aeffe’s revenue has been trending downward for more than a year. In the company’s full fiscal 2024 results, published in March, Aeffe posted a 21.3% year-over-year revenue decline.
Despite a profit bump from the 98 million euro sale of its Moschino cosmetics and perfume portfolio, that influx appears to have all but vanished as luxury’s slowdown dragged down first quarter results.
“The general global slowdown in consumption had an impact on both the wholesale and retail channels, reflecting in our group’s results in the first quarter of the year,” Massimo Ferretti, Aeffe’s executive chairman, said in the release. “This situation, expected for the entire first part of the current year, has not caught us unprepared and we are continuing to implement processes to rationalize activities and all operating costs.”
In Italy, Aeffe’s largest market, sales fell nearly 25% year over year to 26.5 million euros, led by a 26% decline in the region’s wholesale channel. Retail sales decreased by 12% for the period.
Sales in Europe, excluding Italy, dropped about 21% to 18.9 million euros, while America sales declined about 18% to 3.3 million euros. In Asia and the rest of the world, sales fell about 24% to 12.9 million euros.
Overall wholesale revenue for the company, which represented 70% of its turnover, declined about 23% in the first quarter, per the release. Retail revenue, which accounted for 28.9% of Aeffe’s sales, fell about 19% for the period. Royalty revenue, which represents less than 1% of Aeffe’s sales, fell by a little more than 70% year over year.
As the company looks to stem its losses, Ferretti said in Friday’s release that Aeffe is optimistic about a possible market upswing moving forward.
“We look with positivity and renewed confidence to a recovery of the retail market in the upcoming months, continuing to invest in the development of the Moschino, Alberta Ferretti and Pollini brands,” he said.
Significant artistic changes at Aeffe reshaped the company last year.
In January 2024, Adrian Appiolaza was named creative director of Moschino following the death of its previous designer, Davide Renne. Then in September 2024, Alberta Ferretti said she would be leaving her namesake label after 44 years. She was succeeded the following month by Lorenzo Serafini, her long-time protégé.
