Aeffe: profit surges 144% in nine months
today Nov 13, 2017
Aeffe seems unstoppable since it has started reaping the benefits of its strategic repositioning. Pushed by the double-figure growth of its private labels (Alberta Ferretti, Philosophy, Moschino and Pollini shoes), the Italian fashion group has seen its net profit shoot up 144%, increasing from 4.9 million euros on September 30th, 2016, to 11.9 million a year later, having already tripled in the first nine months of last year.
Between January and September 2017, Aeffe reported a total turnover of 239.9 million euros, an increase of 9.9% (10% at a constant exchange rate) compared to the same period last year. This increase is related as much to accessories (+12.8%) as it is to ready-to-wear (+9.8%), led by the positive results achieved by Moschino, the group's flagship brand, where sales grew 10.8% to 163.4 million euros during this period.
The group's other brands aren't to be outdone though, as sales at Alberta Ferretti shot up 22.7%, also increasing by 15.6% at Pollini and 12.8% at Philosophy. The only hitch: a decline of 32.5% in the group's other operations, representing 3.7% of its total turnover and including the licenses for the collections of Jeremy Scott, Cédric Charlier, and Blugirl's beachwear line.
Breaking down the results geographically, the group's sales improved by 20.2% in Italy – Aeffe's largest market, accounting for 49.3% of its total turnover –, by 5.2% in Europe, excluding Italy and Russia, and by 16% in Greater China. Sales have, however, declined by 13.3% in the US and 3% in Russia.
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