MILAN — Aeffe SpA saw a strong acceleration in the first nine months of the year, which led the Italian fashion company to report a net profit of 23.2 million euros compared with a net loss of 14 million euros in the same period last year.
In the nine months ended Sept. 30, revenues amounted to 250 million euros, up 20.9 percent compared with 206.8 million euros in the same period last year, driven by double-digit growth in all its markets.
Aeffe controls the Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini labels.
Earnings before interest, taxes, depreciation and amortization more than quadrupled to 36 million euros, with an incidence of 14.4 percent on total sales, compared with 8.1 million euros in the same period last year, reflecting both the increase in sales and the positive results derived from costs savings for personnel, rents and overheads, in a reaction to the COVID-19 pandemic.
Consolidated operating profit amounted to 17.5 million euros, compared with an operating loss of 12.5 million euros in the first nine months of 2020.
The growth in the first nine months was boosted by an extremely positive contribution provided mostly by the U.S., continental Europe and directly operated online channels, which rose 56 percent as of the end of September compared to the end of September last year.
“We evaluate positively the performance of the first 2021 nine months, considering the good progression of our brands, on the point of view of turnover as well as on the marginality one,” said executive chairman Massimo Ferretti. “Looking at the future, good signals come from the spring 2022 sales campaign, which closed with a 22 percent increase compared to counter-season last year. Furthermore, the whole control of Moschino and the internalization of Moschino Donna [woman] licenses starting from the [fall] 2023 season will allow to implement strategies able to express to the best the brand’s potential.”
In Asia and in the Rest of the World area, sales rose 26.9 percent to 50.1 million euros, representing 20.1 percent of the total. The Greater China area drove the growth, with a 35 percent gain.
Sales in America rose 41.4 percent to 16.6 million euros, accounting for 6.6 percent of the total, thanks to a very strong performance of both the retail and wholesale channels, online included.
Revenues in Europe climbed 29.1 percent to 80.6 million euros, accounting for 32.3 percent of the total, mainly lifted by Germany, the U.K. and Eastern Europe in the wholesale channel. The retail channel continued to be partially influenced by the limited flow of tourists.
Sales in Italy rose 10.3 percent to 102.6 million euros, boosted by the wholesale and e-commerce channels.
The wholesale channel was up 27.2 percent to 189.4 million euros, representing 75.8 percent of the total.
The retail channel grew 1.3 percent to 50.8 million euros, accounting for 20.3 percent of the total, showing a recovery thanks to the progressive easing of the restrictions of international travel. E-commerce sales recorded excellent performances across all brands and geographies.
Royalties rose 20.9 percent to 9.7 million euros, with a 42 percent growth in the third quarter compared with the third quarter last year.
As of the end of September, Aeffe had 57 directly operated stores and 141 franchised locations.
Capital expenditures in the first nine months of 2021 amounted to 1.5 million euros, mostly related to refurbishment and IT technologies.
As of Sept. 30, financial debt including the IFRS 16 accounting effect amounted to 140.3 million euros compared to 148.7 million euros at the end of September last year, thanks to both better economic results achieved and to the effective management of working capital. The financial debt net of IFRS 16 effects amounted to 61.3 million euros compared to 60.1 million euros last year.
Debt includes the first installment of 30 million euros of the 67 million euros needed to acquire 30 percent of Moschino SpA.
The Italian fashion group, which is publicly listed on the STAR segment of the Italian Bourse, acquired the 30 percent stake in Moschino it did not own from Sinv Holding SpA, Sinv Real Estate SpA and Sinv Lab Srl, paying more than 66.5 million euros. The sum is split in 30 million euros at the same time as the transfer of the shares, while the remainder will be paid to the sellers by Nov. 30. Last week, the annual amfAR Gala returned to Los Angeles and honored the brand’s creative director, Jeremy Scott.