Aeffe Spa, the Italian luxury fashion group, has reported a net profit of €35.2 million, approximately $38.7 million, for the first nine months of 2024. This marks a significant turnaround from a loss of €17.8 million during the same period in 2023. Despite the positive profit shift, the company faced a 17.6 percent decline in revenue year-over-year, totaling €207.8 million.
EBITDA saw a substantial increase, reaching €90.9 million—an impressive margin of 43.8 percent. However, all regions experienced declines in turnover, with wholesale operations hit hardest, featuring a downturn of 20.3 percent. Aeffe’s current strategy focuses on restructuring its brands in light of escalating global consumption challenges.
In detail, Aeffe’s revenue from its prêt-à-porter segment was €139.9 million, reflecting a 17.5 percent drop. The footwear and leather division also struggled, generating €86.7 million, which is down 22.6 percent from the previous year.
Regional performance showed that Italy remained a core market, with sales of €89.5 million, down 17.1 percent year-over-year. The wholesale channel in Italy contracted by 23 percent, while retail sales fell by 7 percent. In the broader European market, excluding Italy, revenue dropped 18.3 percent to €63.6 million, attributing declines to specific countries and market pressures.
The Asia and Rest of the World segment posted €42.8 million in turnover, a 19.2 percent decline from €52.9 million in 2023. Meanwhile, the Americas saw a decrease in revenue to €11.9 million, down 15.3 percent.
Wholesale accounted for 66.2 percent of total turnover, with revenues falling 20.3 percent, while retail contributed 30.3 percent, facing a decrease of 12.3 percent. Royalties, which comprised 3.5 percent of consolidated revenue, also dropped by 7.4 percent.
Massimo Ferretti, executive chairman of Aeffe Spa, acknowledged the adverse effects of reduced global consumption within the fashion and luxury sectors. However, he expressed confidence that strategic decisions made recently, including the restructuring of the Moschino brand and the rebranding of Alberta Ferretti, will pave the way for new opportunities.
Aeffe’s balance sheet as of September 30, 2024, reveals net equity of €114.6 million, an increase from €79.2 million at the end of 2023, alongside reduced financial debt totaling €72.3 million, down from €152.5 million. The net working capital has also decreased to €93.6 million, representing 34.2 percent of annual revenues, a slight decline from 2023.
Capital expenditures for the first nine months of 2024 amounted to €2.6 million, primarily directed toward improvements in third-party assets and software acquisitions. The company has made strategic disinvestments, including the sale of a portion of the Moschino brand.
As Aeffe navigates these turbulent market conditions, all eyes will be on its reorganization strategies and their impact on future performance.
