MILAN — Revenues at Aeffe SpA inched up 0.2 percent to 251.5 million euros, or $334.5 million, in 2014 as the Italian fashion group was affected by the end of the Jean Paul Gaultier and Cacharel licenses, and a reorganization of the company’s Japanese distribution network, now managed exclusively through the wholesale channel.
Net of these effects, sales would have increased 7.6 percent at constant exchange rates. Revenues in the 12 months ended Dec. 31, compared with 251.1 million euros, or $331.4 million, in 2013.
“Revenues recorded in 2014 reflect the significant changes in terms of style, the brands portfolio and improvement of efficiency of the Japanese distribution network, which are the basis for a renewed and more performing group structure in the medium-long-term period,” said executive chairman Massimo Ferretti. Aeffe controls the Alberta Ferretti, Moschino and Pollini brands, and produces and distributes collections for labels including Emanuel Ungaro, designed by Fausto Puglisi, and Cédric Charlier. The Moschino brand was revitalized last year by the arrival of new creative director Jeremy Scott.
In 2014, Aeffe’s ready-to-wear sales were down 2.4 percent to 192.1 million euros, or $255.5 million. Net of the effects caused by the changes in licenses and the reorganization in Japan, apparel revenues would have increased 7.3 percent at constant exchange rate.
Revenues of the footwear and leather goods division were up 19.5 percent to 86 million euros, or $114.4 million, before interdivisional eliminations.
Ferretti underscored a 25.8 percent jump in sales in Greater China and gains in Italy and Europe, which helped offset a decrease in Russia, due to a slowdown in its economy. “We are confident that this positive trend will be confirmed over the coming months, especially in light of a 15 percent increase in the orders backlog of the spring/summer 2015 collections compared to the last year,” said Ferretti.
In the year, sales in Italy rose 8.7 percent to 113.6 million euros, or $151 million, accounting for 45.1 percent of total revenues. Europe (Italy and Russia excluded) was up 11.6 percent to 55.8 million euros, or $74.2 million, representing 22.2 percent of sales, showing a recovery across all main markets. Revenues in Russia decreased 14.1 percent to 16.6 million euros, or $22 million, amounting to 6.6 percent of total sales.
The U.S. was down 5.6 percent to 16.1 million euros, or $21.4 million, accounting for 6.4 percent of sales, due to the decrease in revenues related to the end of the licenses mentioned above.
Japan was down 67.9 percent to 7 million euros, or $9.3 million, accounting for 2.8 percent of sales, as a consequence of the reorganization of the local distribution network, effective from the beginning of 2014.
In the Rest of the World, sales rose 10.9 percent to 42.3 million euros, or $56.2 million, representing 16.9 percent of total revenues, boosted by a 25.8 percent jump in Greater China.
Dollar amounts were converted at average exchange for the periods to which they refer.
Aeffe will release full 2014 financial results on March 12.