Aeffe finishes 2019 slightly on the rise

By

Dominique Muret

Published
Jan 31, 2020

Aeffe has slowed down in 2019. The Italian group, whose portfolio includes brands Alberta Ferretti, Philosophy, Moschino and the shoe-brand Pollini, and holds licenses for Jeremy Scott and Cédric Charlier, has ended 2019 with a 1.4% increase year-on-year, despite double-digit increases in 2018. The brand’s consolidated revenue for 2019 is 352.4 million euros, boosted in particular by sales in Asian and Europe (excluding Italy).

The only one of Aeffe’s brands that has experienced growth this year is Moschino, the shining star of the group. With more than 262.5 million euros in revenue in 2019, Moschino accounts for 75% of Aeffe’s total sales. On the other hand, there was a 18.9% decrease in sales at Alberta Ferretti and a 0.3% decrease at both the younger label Philosophy and the Pollini shoe brand, which remained stable. The licensed brands, in turn, saw a 10.2% decline.

In 2019, Aeffe registered growth in all of its regions, except for North America and Italy. A quarter of its total annual revenue comes from Asia and the rest of the world, where sales have increased by 7.5% at constant exchange rates. China and South Korea are largely responsible for this, with respective increases of 7.2% and 14.6%. Europe (excluding Italy), representing about the same proportion of revenue, saw an increase of 8.1%. The company credited this rise to England, Germany and Eastern Europe in its report.

Sales decreased by 4.5% in America, a market that usually has a 5% impact on sales. However, Italy experienced the same decline, representing a far greater hindrance for the group. Aeffe’s domestic market remains its largest, accounting for 45.8% of its total sales.

This decline can be explained by its weakening wholesale network. The company’s wholesale sales, representing about 70% of its total revenue, decreased by 1.8% at a global level.

Retail sales, across the group's 65 stores, increased by 7.5%. The royalty revenues from licensing brought in 13.7 million euros for the Italian company in 2019, representing a 17.7% rise compared to 2018.