In 2020 first term, Aeffe lost a quarter of their overall revenues and, in addition, profitability collapsed. As regards net profits, they slumped from 11.8 million euros down to 4,000 euros. Footwear and leather goods have been going “slightly better”, so to speak, than apparel.
Shoes and bags “slightly better”
Aeffe own Moschino, Alberta Ferretti, Pollini and Philosophy. At the end of 2020 first quarter, their consolidated revenues amounted to 76.2 million euros. Which means -25.4% at current rates of exchange and -25.5% at fixed rates of exchange, in line with estimates formerly provided by Mediobanca (-26%). Earnings coming from the Prêt-à-porter division have dropped by 30%. “Slightly better”, instead, the ones coming from the Footwear and Leather Goods department, which decreased by 7.9%.
Focus on each brand
Moschino (which accounts for nearly three quarters of Aeffe overall turnover) went down 21.3%. As regards the other brands, Pollini down 24.1%, Alberta Ferretti down 50.9% and Philosophy down 35.1%. While making a public statement, the group emphasized that sales campaign, for winter 2020-2021 collections, resulted in a 6.5% downturn. Quite a “positive” accomplishment, considering the situation, which might be scaled down though, due to possible returns and delivery cancellations.
Profitability slumps
In 2020 first quarter, Aeffe EBITDA reached 8.6 million euros, therefore slumping by 67.7% (according to their forecast, Mediobanca had estimated a 65% downturn). As regards the Footwear and Leather Goods department, EBITDA dropped by 28%. Net profits, after tax, amounted to 4,000 euros, compared to 11.8 million euros made by the group in 2019 first quarter.
Renewal until 2023
Ultimately, Aeffe Board of Directors announced they have renewed, until 15 May 2023, Alberta Ferretti’s style consultancy contract: she is the group’s reference shareholder and Aeffe executive manager. Such contract appoints her as creative director of the homonymous brand: her annual wage is going to be 1 million euros.
