Kaia Gerber on the catwalkMoschino show, Runway, Spring Summer 2019, Milan Fashion Week, Italy - 20 Sep 2018

MILAN — Asia, driven by a strong performance in Greater China, helped boost Aeffe SpA’s revenues last year.

The Italian fashion group said Friday that in the 12 months ended Dec. 31, sales increased 10.9 percent to 346.6 million euros, compared with 312.6 million euros in 2017. At constant exchange, revenues grew 11.2 percent. The figures are preliminary and unaudited and full financial data will be reported on March 12.

Revenues of the ready-to-wear division totaled 265.6 million euros, up 10.8 percent compared with the previous year. Sales of the footwear and leather goods division increased 9.3 percent to 118.3 million euros.

Aeffe, publicly listed on Italy’s Star segment of the Italian Bourse, comprises the Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini brands and produces and distributes the Jeremy Scott and Cédric Charlier labels.

“In 2018 we recorded a very positive trend of our proprietary brands in the different distribution channels, thanks to the continuous commitment in term of stylistic research and high quality that determined [the strengthening of our positioning],” said executive chairman Massimo Ferretti. “As the beginning of the new year is benefiting from the favorable growth of the orders’ backlog of the spring 2019 collections and the positive trend of the sales campaign of the fall 2019 pre-collections, we are therefore confident that these promising signals may be confirmed in the coming months.”

Revenues in Italy rose 10.7 percent to 168.4 million euros, lifted by organic growth in the wholesale and retail channels, which both benefited from local customers and high-end tourist flows. The Italian market accounted for 48.6 percent of sales. The company noted that the incidence decreased to 37 percent net of the effect of sales made in Italy to foreign customers.

Sales in Europe, excluding Italy, gained 4.5 percent to 80.3 million euros, driven especially by the good performance of the U.K., Germany and Eastern Europe. The region represented 23.2 percent of total revenues.

Revenues in Asia and the Rest of the World area climbed 23.2 percent to 80.1 million euros, accounting for 23.1 percent of the total and boosted by sales in Greater China, which jumped 27.8 percent at constant exchange.

Sales in the Americas dropped 4.8 percent to 17.7 million euros, representing 5 percent of total. At constant exchange, revenues decreased 1.3 percent.

In 2018, wholesale revenues grew 13.1 percent to 247.8 million euros, accounting for 71.5 percent of consolidated sales.

Sales at directly operated stores grew 4.5 percent to 87 million euros, representing 25.1 percent of the total, while royalties gained 15 percent to 11.6 million euros.

Last year the popularity of the Moschino brand, designed by Jeremy Scott, was further boosted by a collaboration with Swedish high street retailer H&M and a new Moschino store concept was unveiled in Paris.

As reported, last year, Aeffe partnered with Triboo, a company listed on Alternative Investment Market Italia, to launch a global omnichannel distribution project, taking its online and off-line sales channels in-house. The Italian fashion group created  a dedicated team to focus on the online stores of Moschino, Alberta Ferretti and Philosophy di Lorenzo Serafini. The three brands’ online stores were previously operated by the Yoox Net-a-porter Group.