The performance of Aeffe SpA in the first half dragged down the group’s shares on the Milan Stock Exchange by 5.3 percent to 0.68 euros by early afternoon on Thursday.
The Italian parent of Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini reported it continues to operate at a loss and registered shrinking revenues and profitability in the first half of the year.
As of June 30, consolidated revenues fell 14.9 percent to 138.6 million euros, compared with 162.9 million euros in the same period last year.
Revenues of the ready-to-wear division amounted to 94 million euros, down 12.5 percent, while sales of the footwear and leather goods division totaled 56.5 million euros, falling 25 percent.
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Net loss widened to 20.4 million euros compared with 11.7 million euros in the first half last year.
“The unsatisfactory results of the first half of the year are the reflection of an extremely complex market situation. The slowdown in consumption in key countries for us, such as Italy and the United States, has significantly impacted our group performance,” said Massimo Ferretti, executive chairman of Aeffe. “Aware of the complexity of the moment we are experiencing, we are equipping ourselves to face the complex situation and we are confident that we will see a recovery of consumer interest in fashion goods in the short term. We are satisfied with the new stylistic course of the Moschino brand, which will allow us to reposition the brand with a new international appeal.”
Moschino unveiled the brand’s first menswear collection and the women’s resort line designed by creative director Adrian Appiolaza in June. The designer joined Moschino at the end of January, following the sudden death last November of Davide Renne, who had succeeded Jeremy Scott’s decade-long tenure.
In the first half, earnings before interest, taxes, depreciation and amortization amounted to 400,000 euros, compared with 8.5 million euros last year.
Sales in Italy decreased 15.5 percent to 57.6 million euros, representing 41.6 percent of the total, hurt by the wholesale channel, which contracted 21 percent, while the retail channel was down 7 percent compared to the first semester of 2023.
Revenues in Europe fell 16.2 percent to 42.1 million euros, accounting for 30.4 percent of the total, dented by both distribution channels.
In Asia and the Rest of the World area, Aeffe sales were down 8.7 percent to 31.4 million euros, representing 22.6 percent of the total.
Sales in America dropped 25.6 percent to 7.5 million euros.
Wholesale revenues, which represented 66.2 percent of sales, fell 17.1 percent to 91.7 million euros.
Retail sales were down 10.8 percent to 42 million euros. Royalties decreased 6.2 percent to 5 million euros.
The operating loss amounted to 15.8 million euros compared to an operating loss of 7.9 million euros last year.
Capital expenditure investments in the period amounted to 1.8 million euros, mainly pertaining to work on third party assets and purchases of software.
Net of the IFRS 16 effect, debt amounted to 135.2 million euros, compared with 152.5 million euros at the end of December.
