MILAN — International expansion helped Aeffe SpA log another quarter of growth, boosted in particular by a 20.1 percent increase in mainland China.
In the three months ended March 31, the Italian fashion group reported a 4.3 percent gain in net profit to 11.8 million euros, compared with 11.3 million euros in the same period last year.
Massimo Ferretti, executive chairman of Aeffe, touted the group’s “good progression in revenues and profitability, both in prêt-à-porter and footwear and leather goods divisions, reflecting the effectiveness of the stylistic proposal and the strategies implemented.” This was achieved “despite signs of macroeconomic and geopolitical uncertainty,” as Aeffe “is reacting with determination to develop collections with strong distinctiveness to seize any opportunity arising in this challenging market environment,” concluded Ferretti.
Aeffe, which is 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.
On May 18, designer Alberta Ferretti, the sister of Massimo, will hold a show in Monaco to present her namesake 2020 resort collection as guest of honor of the Monte-Carlo Fashion Week, which runs from May 15 to 19.
Moschino’s creative director Jeremy Scott, meanwhile, will showcase that brand’s men’s spring 2020 collection, along with the women’s resort spring 2020 lineup, on June 7 at the Universal Studios Hollywood Backlot.
In March, Moschino and Scott, who is based in Los Angeles, revealed a capsule collection in collaboration with The Sims with a party at Coachella.
As reported, Moschino is expected to open stores in both Miami and New York by the end of the year.
Sales rose 7.4 percent to 102.2 million euros, compared with 95.2 million euros in the same period last year.
Revenues of the rtw division were up 8 percent to 77.9 million euros, while the footwear and leather goods division increased 4 percent to 33.3 million euros.
In the first quarter, sales in the Italian market increased by 1.8 percent to 46.1 million euros, compared with the same period last year, representing 45.1 percent of the total. That incidence, said the company, decreased to 32 percent net of the effect of sales to foreign customers made in Italy.
Revenues in Europe decreased 1.4 percent to 23.2 million euros, accounting for 22.7 percent of the total.
In Asia and in the Rest of the World, sales climbed 29.5 percent to 27.8 million euros, representing 27.2 percent of total revenues, boosted in particular by an “excellent” trend in Greater China, which posted a 20.1 percent growth.
Sales in the Americas were up 4 percent to 5.1 million euros, contributing to 5 percent of the total.
By distribution channel, wholesale revenues grew 6.4 percent to 75.7 million euros, representing 74 percent of the total.
Sales at directly operated stores were up 8.1 percent to 23.3 million euros, accounting for 22.8 percent of the total. Directly operated stores totaled 64, unchanged compared with the full 2018 year, in line with the company’s selective distribution strategy.
Royalties grew 29.3 percent to 3.2 million euros, representing 3.2 percent of the total.