Aeffe Spa, an Italian luxury fashion group, has revealed its financial results for the first nine months of 2024, showcasing a striking rebound with a net profit of €35.2 million, equivalent to approximately $38.72 million. This marks a significant turnaround from the €17.8 million loss recorded in the same timeframe last year. However, it’s not all rosy, as the company faced a revenue decrease of 17.6 percent year-on-year, bringing total earnings down to €207.8 million.
The performance highlights a robust EBITDA of €90.9 million, representing a 43.8 percent margin, a stark contrast to the previous year’s EBITDA of just €12.2 million. Despite this financial triumph, Aeffe noted declines across all regions. The wholesale segment was particularly hard hit, plummeting by 20.3 percent. The luxury retailer is strategically focusing on brand reorganization to counter the current global economic slowdown impacting consumer spending.
Regionally, Italy recorded a revenue of €89.5 million, reflecting a drop of 17.1 percent compared to the previous year. The wholesale channel suffered a steep 23 percent decline, while retail sales dropped by 7 percent. The rest of Europe, excluding Italy, was not spared either, with sales declining by 18.3 percent to €63.6 million. Meanwhile, the Asian markets and the Rest of the World saw their turnover decrease by 19.2 percent, totaling €42.8 million.
In the Americas, sales were reported at €11.9 million, a decline of 15.3 percent from €14.0 million in 2023. The wholesale sector accounted for 66.2 percent of the total turnover at €137.6 million, reflecting a 20.3 percent decline at constant exchange rates. The retail segment, contributing 30.3 percent of sales with €63.0 million, also experienced a decrease of 12.3 percent.
The company attributed this downturn to the broader slowdown in global consumption, especially in the fashion and luxury sectors. Massimo Ferretti, executive chairman of Aeffe, acknowledged the complexities of the current economic climate, which is further exacerbated by political and social instability. He expressed confidence in Aeffe’s strategic restructuring initiatives and the revitalization of the Moschino brand and Alberta Ferretti label, which he believes will unlock new opportunities.
As of September 30, 2024, Aeffe’s balance sheet indicates a net equity of €114.6 million, an increase from €79.2 million at the end of 2023. The group reported a financial debt of €72.3 million, a marked decrease from €152.5 million at the end of the previous year. In terms of capital expenditures, Aeffe invested €2.6 million in the first nine months of 2024, focusing on upgrades and software acquisitions, while also completing the sale of a segment of the Moschino brand as part of their disinvestment strategy.
