Dive Brief:
- Aeffe SpA revenue for the first nine months of 2024 was 207.8 million euros, or about $218.9 million, down 17.8% from 252.8 million euros for the same period in 2023, according to a Thursday earnings release.
- Meanwhile, net profit for the first nine months rose to 35.2 million euros compared to a loss of 17.8 million for the same period in 2023, and consolidated EBITDA was 90.9 million euros, compared to 12.2 million euros in 2023. In September, the company received a significant capital gains infusion when it sold its Moschino cosmetics and perfume portfolio to Euroitalia for 98 million euros.
- Revenue from Aeffe’s ready-to-wear division was down 17.5% year over year, and revenue from the footwear and leather goods division dropped 23%. Sales in the wholesale channel were down 20%, and retail sales dropped 12%. In addition, sales declined in every region.
Dive Insight:
Aeffe is working to reshape itself as it confronts some of the luxury sector challenges that have hit competitors including LVMH, Ferragamo, Kering and Burberry.
“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,” Executive Chairman Massimo Ferretti said in the release. “We are aware of the complexities of this historical moment, also characterized by significant political and social instability, but the strategic decisions we have made over the last few months and the finalized operations reflect a profound awareness of the potential we know we have within our structure.”
In addition to the sale of Moschino beauty, Aeffe’s fashion structure shifted in September when Alberta Ferretti stepped down as creative director of her namesake brand. She was replaced in October by Lorenzo Serafini, who had previously served as creative director of Ferretti’s Philosophy di Lorenzo Serafini brand. Aeffe decided to fold the Philosophy line into the main Alberta Ferretti brand, resulting in a more streamlined stable of fashion houses.
“I am sure that the reorganization of the Moschino brand and the rebranding of the Alberta Ferretti label will open up new interesting scenarios,” Massimo Ferretti said.
