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Aeffe Cuts Loss

A more efficient group structure, cost-cutting and growth in sales helped the company reduce its net loss in 2012.

MILAN — A more efficient group structure, cost-cutting and growth in sales helped Aeffe SpA reduce its net loss in 2012, which totaled 3 million euros, or $3.8 million, compared with 4.3 million euros, or $6 million, in 2011.

In the 12 months ended Dec. 31, the Italian fashion group saw sales climb 3.3 percent to 254 million euros, or $325.1 million, compared with 246 million euros, or $342 million, the year before.

Aeffe, listed on the STAR segment of the Italian Stock Exchange, controls the Alberta Ferretti, Moschino and Pollini brands and produces and distributes collections for brands including Emanuel Ungaro and Cédric Charlier.

 

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Chairman Massimo Ferretti said he was “satisfied with the choices” made in 2012, “especially those relating to the reorganization of the licenses’ portfolio,” citing “some unprofitable agreements” that were closed and new projects. For example, Natalie Ratabesi was tapped to helm the Philosophy brand to allow Alberta Ferretti to focus on and expand her namesake label, and Fausto Puglisi was selected to relaunch Emanuel Ungaro. After 17 years, the licensing agreement between Aeffe and Jean Paul Gaultier ended in October.

Ferretti said the group is focused on developing in “high-potential markets,” such as Russia, and the Far and Middle East, which “significantly” contributed to the growth in sales last year. “Thanks to the positive backlog” for spring, “together with the positive results” for fall 2012, including the debut of Emanuel Ungaro, Ferretti said he “look[ed] at the new year with optimism both in terms of revenue growth and a more than proportional increase in profitability.”

In 2012 sales of the group’s ready-to-wear division were up 2.1 percent to 201.3 million euros, or $257.6 million, while revenues of the footwear and leather goods division rose 8.7 percent to 69.5 million euros, or $89 million.

Earnings before interest, taxes, depreciation and amortization grew 24 percent to 22.8 million euros, or $29.2 million.

Operating profit more than doubled, reaching 8.8 million euros, or $11.2 million, from 3.5 million euros, or $4.8 million, in 2011.

Dollar amounts have been converted at average exchange for the periods to which they refer.