Aeffe’s net income doubles in 2016 driven by Moschino
Italian fashion group Aeffe has had an explosive year in 2016. Two years ago the group implemented a strategic re-positioning, involving its own brands (Alberta Ferretti, Philosophy, Moschino and footwear label Pollini) and its licenses (Jeremy Scott, Cédric Charlier and lingerie line Blugirl). It is now reaping the fruits of this work, and reported “a significant improvement in profitability,” with all economic indicators on the up last year.
In a press release, the group indicated that its net income skyrocketed, growing 139% from €1.5 million at the end of 2015 to €3.6 million a year later, and confirmed the 4.4% rise (+4.7% at constant exchange rates) of its 2016 revenue, which reached €280.7 million as reported last February.
Last year the group achieved an EBIT of €10.1 million (+71%) and an EBITDA of €25.2 million (+30%), equivalent to 9% of revenue.
The group underlined that the growth was spearheaded by the ready-to-wear division, whose sales, driven by the recovery of Moschino, reached €215.8 million (+4.2%), while accessories and footwear sales were stable at +0.2%, reaching €95.9 million.
Sales in 2016 increased proportionately in all regions with the exception of Russia, where they posted a slight decrease (-0.7%): Aeffe grew 3.1% in the USA, 5.4% in Europe (excluding Russia and Italy), 5.3% in Italy – its main market, accounting for 45% of overall revenue – and by 3% in the rest of the world, especially thanks to a sales rise of over 7% in mainland China.
Aeffe’s revenue last year was driven by the wholesale channel, which accounts for 71.7% of its total revenue and which grew by 8.3% compared to 2015, reaching €201.2 million. On the other hand, and as in the case of Prada, retail sales fell by 5.3%.
Executive President Massimo Ferretti is confident about 2017, and was happy with “the group’s constant growth and especially with the strong improvement in profitability,” chiefly due to “the efforts at promoting [Aeffe's] brands through a series of special projects in high-potential markets.”
Aeffe’s net financial indebtedness has decreased from €80.5 million as of 31st December 2015 to €59.5 million a year later.