Dive Brief:
- Aeffe SpA saw its consolidated revenue decline 9.5% in its 2023 fiscal year to 319 million euros, or about $346 million at current exchange rates, according to a news release Thursday.
- Massimo Ferretti, executive chairman of Aeffe, attributed the slowdown to the European and American markets, which dropped 16.3% and 21.3%, respectively. However, Aeffe’s retail segment saw a 7.2% revenue increase, due to the company’s reorganization in China. In 2022, the company took direct control of its Moschino stores in the region.
- Aeffe-owned Moschino is one of the luxury fashion brands entering 2024 without a creative director, following the death of Davide Renne, who held the role for nine days. The company did not announce a timeline for naming a new creative director.
Dive Insight:
Aeffe’s earnings decline reflects a similar slowdown seen in the luxury sector broadly. Though some luxury brands have seen growth recently, consumers have been changing their discretionary spending.
Aeffe, whose brands include Moschino, Alberta Ferretti, Philosophy and Pollini, reported 212.4 million euros in revenue for its ready to wear division, a 8.4% decrease year over year. The company’s footwear and leather goods segment represented 142.1 million euros, a 13.1% decrease.
By region, the company saw a 7.3% decrease in revenue in Italy, which is excluded from its results in Europe. In Asia and the rest of the world, revenue increased 2.5%.
Ferretti said the company is eyeing potential growth in its retail segment, where it reported 7.2% revenue growth. He also said the company hopes for “a progressive restart,” of its wholesale segment in Europe and the United States. The wholesale business saw revenue decline 14% in the fiscal year, and the release states that the retail channel's boost wasn’t enough to offset the decrease in the wholesale channel.
“Aeffe Group continues to firmly believe in the values of creativity, quality and service towards its customers, elements which I believe will allow us to rationally address the instabilities of international markets, mainly due to the very complicated geo-political situation that characterizes the current moment," Ferretti said in the release.
