Translated by
Cassidy STEPHENS
Published
Mar 15, 2023
Aeffe is once again seeing its finances plunge into the red. While the Italian fashion group, owner of Moschino, returned to profit in 2021 after being heavily impacted by the pandemic, it is back in the red in 2022. Its turnover, for its part, continues to progress to 352 million euros (+8.4%), recovering its pre-pandemic level, as announced in January when it published its preliminary results.
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Last year, the group, which operates through its own brands (including Alberta Ferretti, Lorenzo Serafini‘s new Philosophy line and the Pollini shoe company) and via licences (Jeremy Scott and others), posted a loss of 9 million euros, compared to a 12 million euros profit in 2021. The latter “included non-recurring tax benefits of 9.5 million euros,” the group explained in a press release. Operating profit (Ebit) has fallen from €9.2 million in 2021 to €1.2 million a year later.
Gross operating profit (Ebitda), which soared in 2021, remains virtually unchanged, rising slightly to €35.6 million in 2022 from €35.3 million the previous year, settling at 10.1% of total turnover. This result was achieved “despite difficulties in the Chinese market related to the local health crisis, which had a negative impact in the second half of the year on both sales volumes and expected margins, contributing to an increase in variable and fixed costs,” the company pointed out.
In the ready-to-wear division, Aeffe posted a gross operating surplus of 15 million euros, compared to 23 million euros in 2021, due to the negative context in China. On the other hand, for the footwear and leather goods division, Ebitda has almost doubled from 12 million in 2021 to 21 million euros a year later.
Last year, the company from San Giovanni in Marignano, near Rimini, increased its debt, which reached 127 million euros on December 31, 2022. In the last two years, Aeffe has made “two strategic investments of an extraordinary nature for a total amount of 90 million euros.” The company took full control of Moschino by purchasing the 30% of the capital it was missing. It also took over direct distribution of its flagship brand in China.
Executive chairman Massimo Ferretti is delighted with these operations, confident that “the choices made will ultimately result in an increase in both revenues and profitability.” “We are particularly pleased with the investments made, including the completion of Moschino’s direct distribution project in China,” he concluded, assuring that the group continues to focus on the development plans of its own brands “both at a commercial level and in terms of optimising their organisational structure.”
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