Aeffe faces declining sales and increased losses in first half of 2024

The revival of Moschino and a market slowdown impacted Aeffe‘s mid-year financial performance. The fashion conglomerate, which owns Moschino, among other brands, recorded a significant increase in its net loss—from 11.7 million euros in the first half of 2023 to 20.4 million euros—and a 14.9% decline in sales (14.6% at constant exchange rates), totaling 138.59 million euros. The company, based in San Giovanni in Marignano, Italy, is feeling the effects of the broader luxury market slowdown and a strategic relaunch of its flagship brand under the recent creative direction of Adrian Appiolaza, who took the helm in January.

“The unsatisfactory results for the first half reflect an extremely complex market situation. A slowdown in consumption in key markets for us, such as Italy and the United States, has significantly impacted our group’s performance,” stated Massimo Ferretti, the executive chairman of the group, in a press release. He remains optimistic about a short-term recovery in luxury goods consumption and expresses confidence in “Moschino’s new stylistic direction, which will allow us to reposition the brand with a new international appeal.”

Geographically, Aeffe, which also owns Alberta Ferretti, Philosophy by Lorenzo Serafini, and footwear brand Pollini, experienced sales declines across all regions. In Italy, its largest market, making up 41.6% of its total revenue, sales dropped by 15.5% to 57.6 million euros. The wholesale channel saw a 21% decrease, while retail sales fell by 7%.

In Europe (excluding Italy), which accounts for nearly a third of Aeffe’s revenue, sales decreased by 16.2% to 42.1 million euros. In America, which constitutes 5.4% of the total business, sales plummeted by 25.6% to 7.5 million euros, while in Asia and the rest of the world, sales fell by 8.7% to 31.3 million euros.

On the profitability front, Aeffe recorded a consolidated operating loss (Ebit) of 15.8 million euros, compared to a loss of 7.9 million euros in the first half of 2023. Similarly, the gross operating profit (Ebitda) dropped by 95% to 419,000 euros from 8.5 million euros in the first six months of 2023.

All of the group’s brands reported declines in revenue from January to June 2024. Moschino’s sales fell by 14.6% at constant exchange rates to 104.8 million euros, Alberta Ferretti’s revenue plummeted by 16.3% to just under 10 million euros at 9.9 million euros, Pollini’s sales decreased by 13.6% to 14.8 million euros, and Philosophy’s sales dropped by 6.8% to 8.2 million euros.