Acquisitions on standby. Before the consumer slowdown and the luxury crisis arrived, industry clusters had said that M&A would continue, even if at a slower pace than before. But back then all the potential deals were, so to speak, “frozen”, and strategies have changed. Bloomberg reports that Altofare has hired some services to advise on managing the debt level of one of its subsidiaries. No statement from the company on the matter, but we spoke with Davide Aicardi, CEO of Altofare Group, about future strategies. The platform, backed by White Bridge Investments, brings together 11 companies active in the production of highly manufactured and innovative accessories and finishes for major brands.
Debt
According to Bloomberg, Altofare has reportedly hired KPMG and law firm Chiomenti to advise on managing the debt level of one of its subsidiaries. These lines expire in 2028 and 2029, but in the meantime, the group has to deal with the amortization plan through semi-annual maturities: so it would be preparing to start negotiations with creditors. The company, meanwhile, prefers not to comment.
The interview with Davide Aicardi
Let’s start with how 2024 went…
It was a difficult year. Paradoxically, numerically both customers and orders grew compared to 2023, but the overall volume decreased.
Why?
Customers are constantly reviewing collections, orders are increasingly broken up, and volumes are smaller. There are also fewer and fewer continuous products.
And how do you envision 2025?
There is uncertainty on all fronts. So it’s really difficult to predict the near future, considering geopolitics and other external factors. For 2025, there is cautious optimism. I think the situation may improve in the second half of the year, but there is still a whirlwind of creative directors, so the time for a more substantial recovery is still long.
The external factors mentioned are duties?
More than duties: Altofare is more concerned about the rising price of gold. We implement tools and rely on hedging to avoid these price increases, or at least to guard against the price increase. Because then, with the contracts signed, it’s not possible to pass the increase on to customers.
Can you see further ahead?
It’s complicated. I expect a better 2026 than the previous two years, though.
But to what level will it return?
Frankly, I don’t know if it’ll be possible to return to a post-Covid pace. We will certainly have a different scenario in front of us, with luxury brands having to focus on increasing the quality of their products to be able to justify price tags’ increments. The brands have realized it: Service and quality are needed.
Meanwhile, how is Altofare steering the ship?
We have decelerated on some projects that we have diluted over time. We are taking a guarded approach, consolidating operations and paying more attention to cash flow.
Are there any acquisitions in sight?
Dossiers are on the table, but we are cautious, and have put acquisitions on hold for the time being. When conditions return, we will resume our path.
Is it limiting to turn to luxury, as there are not that many customers?
We are diversifying sectors. Not just fashion but: furniture, eyewear and other industries more generally.
Last curiosity: do you believe in India as a growth lever for luxury?
For cultural, historical, political reasons, India will not be the second China.
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