Aeffe Spa, the Italian parent company of Moschino and Alberta Ferretti, among others, is seeing its sales decline and plunge deeper into the red in the first half of FY23. The company has been writing red figures since the end of financial year 2022.
Consolidated sales reached 162.9 million euros in the first half of 2023, equivalent to a 7.7 percent drop in turnover. Aeffe Spa saw its turnover fall the hardest in the Americas by 29.4 percent. Europe, excluding Italy, recorded a 15.3 percent drop in sales. In amounts, Europe accounted for sales of 50.2 million euros.
Italy is still the company's biggest market. With sales of 68.2 million euros, it was down just 4.4 percent. Aeffe Spa recorded sales growth only for Asia: plus 8.9 percent. The group owed this positive result to the implemented distribution model that delivers directly to consumers.
Reorganisation and repositioning behind results
Not only does the company's turnover change negatively, its net result shoots further into the red. The company's net loss is 11.6 million euros in the first half of 2023. By comparison, in the first half of 2022, the company still posted a profit of 2.9 million euros. It eventually dipped into the red at the end of that year.
Massimo Ferretti, executive chairman of Aeffe , stated in the report that results are affected by the reorganisation and strategic repositioning that should bring improvement in the short term.
"Although we report a decline in sales compared to the same period last year, we are satisfied with the results of the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand in the Chinese market," he commented. He said the Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini brands also recorded good results.
"We are looking forward to the second half of the year with continued focus on the markets and our customers, and we are confident that we will return to positive growth very soon," Ferretti added.
This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.