- Prachi Singh |
In the first nine months, Aeffe SpA recorded a 35.1 percent increase in profits, reports WWD quoting figures released by the company. Earnings during the period under review reached 16.1 million euros (18.2 million dollars), compared with 11.9 million euros (13.4 million dollars) in the same period last year. The company’s revenues for the period increased 12.6 percent to 264.6 million euros (299.9 million dollars) with sales of ready-to-wear division up 12.8 percent and 10.7 percent sales rise in footwear and leather goods division.
The report quoted Massimo Ferretti, Executive Chairman of the group, saying: “The performance confirmed a path of solid and continuous development, thanks to the creation of high quality and distinctive collections. We expect an increase in sales and a more than proportional growth in profitability for the full 2018. Moreover, the orders’ backlog of the spring 2019 season, which posted a 6 percent increase, contributes to a positive sentiment on the growth over the mid-long term.”
Highlights of Aeffe's nine months' financial performance
In the nine months, EBITDA increased 22 percent to 37.1 million euros (42 million dollars), while operating profit rose 28.2 percent to 27.7 million euros (31.3 million dollars).
The company’s sales in Italy were up 11.2 percent to 129 million euros (146 million dollars), accounting for 48.7 percent of total, driven by organic growth at both its wholesale and retail channels. Revenues in Europe, excluding Italy and Russia, grew 9.9 percent to 53.6 million euros (60.7 million dollars), contributing to 20.3 percent of the total, driven by a strong performance in the UK, Germany, France and Eastern Europe.
Revenues in Russia increased 1.8 percent to 7.3 million euros (8.2 million dollars), representing 2.8 percent of total, while in the Rest of the World, the company posted 27.4 percent sales rise to 61.4 million euros (69.6 million dollars), representing 23.2 percent of total, driven by a 38 percent increase in the Far East. Revenues in the US were down 9.9 percent or 4.4 percent at constant exchange to 13.3 million euros (15 million dollars), accounting for 5 percent of total.
Wholesale revenues grew 15.8 percent to 190.4 million euros (216 million dollars), contributing to 72 percent of consolidated sales, while sales of directly operated stores increased 3.9 percent to 65.6 million euros (74.3 million dollars), accounting for 24.8 percent of total. Royalties increased 16.4 percent to 8.5 million euros (9.6 million dollars).