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MILAN — Lackluster sales in Europe and the U.S. were offset by gains in the rest of the world and helped Aeffe SpA close the first quarter of the year with growth in net profit despite a decrease in revenues.
In the three months ended March 31, the Italian fashion group posted a 6.1 percent rise in net profit, which reached 2 million euros, or $2.6 million, compared with 1.9 million euros, or $2.5 million, in the same period last year.
Revenues dropped 2 percent to 73 million euros, or $96.3 million, compared with 74.5 million euros, or $97.6 million.
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.
Revenues of the apparel division dropped 1.9 percent to 56.9 million euros, or $75.1 million, while revenues at the footwear and leather goods division decreased 0.3 percent to 20.3 million euros, or $26.8 million, before interdivisional eliminations.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
“In the current difficult situation continuing in some countries such as Italy and, more generally, in Europe, the group remains focused to a higher degree of geographic diversification, especially in rapid-growth markets,” said executive chairman Massimo Ferretti. “In addition, the replacement of a few previous brands with the new projects of Cédric Charlier and Ungaro by [Fausto] Puglisi represents a strong sign of the group’s revamped dynamism.”
Sales in Italy decreased 2.1 percent to 29.2 million euros, or $38.5 million, accounting for 40 percent of sales. Europe, which accounted for 20 percent of sales, showed a 5.2 percent drop. The Russian market, representing 8 percent of sales, fell 7.8 percent. Sales in the U.S. dropped 8.2 percent and accounted for 6 percent of revenues. At current exchange, Japan showed sales decreasing 3.9 percent, contributing to 9 percent of sales, but at constant exchange, they would have increased 10.4 percent. In the rest of the world, revenues rose 10.2 percent and totaled 12 million euros, or $15.8 million, amounting to 17 percent of sales.
In the quarter, earnings before interest, taxes, depreciation and amortization dropped 9.8 percent to 9.5 million euros, or $12.5 million.
Operating profit dropped 9 percent to 6.3 million euros, or $8.3 million.
As of March 31, net financial debt stood at 94.5 million euros, or $124.7 million, compared with 107.8 million euros, or $141.2 million, at the end of March last year.