Adjusted EBITDA plunged to 12.4 million euros, or 3.9 percent of revenue, from 35.6 million euros in FY22. Adjusted EBIT turned negative, recording minus 20.5 million euros compared to positive 1.2 million euros in FY22, and the net loss widened to 32.1 million euros from 9 million euros in the previous year, the company said in a press release.
Aeffe Group reported revenue of €319 million in FY23, a 9 percent decline from €352 million in FY22. Despite the challenges, revenue in Asia grew, especially with the expansion of direct distribution of the Moschino brand. The company's adjusted EBITDA decreased to €12.4 million from €35.6 million, and the net loss widened to €32.1 million from €9 million.
Aeffe Group's ready-to-wear division reported revenue of €212.4 million, reflecting a decline of 7.6 percent at constant exchange rates (minus 8.4 percent at current exchange rates ) compared to FY22. The footwear and leather goods division also saw a slowdown, with revenue falling to €142.1 million, a decline of 13.1 percent on both a constant currency and current.
In Italy, which represents 42 percent of the group's turnover, sales decreased by 7.3 percent to 134 million euros, while sales from the retail channel increased by 3 percent and sales from the wholesale channel They contracted 8 percent. Sales in Europe fell 16.3 percent to €98.6 million, attributed to country- and market-specific declines. However, in Asia and the rest of the world, the group managed to increase its revenue by 4.9 percent to 66.8 million euros. Sales in the United States were down 20 percent.
The wholesale channel, which represents 67.1 percent of turnover, experienced a decrease in revenue of 13.9 percent at constant exchange rates, to 213.9 million euros. Meanwhile, the retail channel, which represents 29.8 percent of the group's sales (94.9 million euros), saw an increase of 9 percent at constant exchange rates. Royalty income, which represents 3.1 percent of consolidated turnover (9.9 million euros), decreased by 33.7 percent following the termination of some licenses.
“2023 was a year of transition for our group, which saw a radical reorganization of the Moschino brand in terms of both creativity and distribution, and at the same time a transformation of its internal structure through a series of mergers and corporate incorporations. The results we present today, expected but not positive, are clearly the result of these transformations and the strong investments of recent years that will bring positive effects as early as 2024,” he said. Massimo Ferretti, CEO of Aeffe.
Fiber2Fashion News Desk (DP)
