MILAN — A day after releasing its first-quarter results, impacted by the coronavirus pandemic, shares of Aeffe SpA took a hit on the Milan Bourse.
While shares tumbled as much as 6.9 percent around mid-day, they closed down 4.4 percent at 0.96 euros at the end of trading on Thursday.
As reported, the progressive lockdown of stores globally hurt Aeffe’s bottom line in the first quarter, which fell to a mere 4,000 euros, compared with 11.8 million euros in the same period last year.
Earnings before interest, taxes depreciation and amortization totaled 8.6 million euros, down 67.7 percent compared with 26.6 million euros last year, impacted by the decrease in sales at both distribution channels in all markets.
Revenues decreased 25.4 percent to 76.2 million euros, compared with 102.2 million euros in the same period last year.
In a phone interview to comment the performance on Wednesday, general director Marcello Tassinari underscored that the first quarter “does not yet reflect the positive results that will come from the actions adopted to face the impacts of the spread of the virus on a global scale, which will begin to materialize from the second quarter of the year.”
One area that was severely affected was Greater China, which reported a 42 percent decrease in the period, although Tassinari said China has been showing positive signs and in the first 10 days of May was up 13 percent.
Banca IMI said the results were “in line with expectations” and underscored the company’s plans to protect its profitability, with actions that will materialize from the second quarter. Among the cost-saving initiatives, it highlighted the renegotiations of rents; using the government retention scheme and accrued holidays to make labour costs more flexible; postponing some costs for advertising and public relations, and evaluating to switch some existing credit lines into new granted lines, in order to lower financial expenses. The bank’s rating was “buy” at 2.2 euros.