Aeffe Group, a leading Italian-based luxury fashion firm, has reported revenue of €138.6 million (approximately $150 million) for the first half of fiscal year 2024 (H1 FY24), a decrease of 14.9 percent from €162.9 million in the same period in 2023. At constant exchange rates, the decrease was 14.6 percent.
Aeffe reported revenue for the first half of fiscal year 2024 of €138.6 million (around $150 million), down 14.9% from the previous year. The company's EBITDA was €0.4 million in the first half of fiscal year 2024 and the net loss amounted to €20.4 million. Ready-to-wear revenue fell by 12.5% and footwear and leather goods revenue fell by 25%. Sales in Italy, Europe, Asia and America declined.
In the first half of 2024, consolidated EBITDA was slightly positive at €0.4 million, representing a margin of 0.3 percent on turnover. This is a significant decrease compared to the EBITDA of €8.5 million, representing a margin of 5.2 percent on turnover, recorded in the first half of 2023. Consolidated EBIT was negative at €15.8 million, which is worse than the negative €7.9 million in the first half of 2023. The Group's net loss amounted to €20.4 million, compared to a net loss of €11.7 million in the previous year.
The ready-to-wear division reported a turnover of €94 million, down 12.5% at current exchange rates and 12.9% at constant exchange rates compared to the same period in 2023. The footwear and leather goods division reported a turnover of €56.5 million, down 25% at current exchange rates and the same decline at constant exchange rates, the company said in a press release.
At regional level, sales in Italy, which accounted for 41.6% of turnover, decreased by 15.5% to €57.6 million. The wholesale channel in Italy contracted by 21%, while the retail channel recorded a decrease of 7% compared to the first half of fiscal year 2023. In Europe, which contributed 30.4% of turnover, sales fell by 16.2% to €42.1 million, with declines in both the wholesale and retail channels in specific countries and markets.
In Asia and the rest of the world, the group achieved a turnover of 31.4 million euros, representing 22.6% of turnover, 7.4% less than in the first half of 2023. Sales in America, which represent 5.4% of turnover, decreased by 25.6% at constant exchange rates.
Wholesale channel revenues, representing 66.2% of turnover (€91.7 million), decreased by 17.0% at constant exchange rates. Retail channel revenues, representing 30.3% of group sales (€42 million), showed a decrease of 10% at constant exchange rates compared to the same period of the previous year. Royalty income, representing 3.5% of consolidated turnover (€5 million), decreased by 6.2% compared to the same period of fiscal year 2023.
“The unsatisfactory results for the first half of the year reflect an extremely complex market situation. The slowdown in consumption in key countries for us, such as Italy and the United States, has significantly affected the performance of our group. Aware of the complexity of the current situation, we are preparing to face the complex situation and we are confident that we will see a recovery in consumer interest in fashion products in the short term. We are satisfied with the new stylistic direction of the Moschino brand, which will allow us to reposition the brand with a new international appeal,” he said. Massimo Ferretti, CEO of Aeffe.
Fibre2Fashion (DP) Press Desk
