Aeffe, the Italian fashion group known for its brands like Moschino and Alberta Ferretti, has experienced a significant surge in profits during the first half of 2021 compared to the previous year. The company reported a remarkable 30.4% increase in revenue, reaching a total of 155 million euros in the first six months of the year. This impressive growth can be attributed to the acceleration of sales, which rose by an astounding 76% in the second quarter alone. Despite these positive figures, it is important to note that Aeffe’s sales have not fully recovered to pre-pandemic levels, as there was a 10.5% decrease compared to the same period in 2019. This decline can predominantly be attributed to the prolonged closures of stores in Italy and Europe, which account for 71% of the group’s total revenue.

One of Aeffe’s prominent brands, Moschino, represents a significant portion of the company’s total sales, amounting to 82%. However, it is worth mentioning that Aeffe also owns other renowned brands like Alberta Ferretti, Philosophy, and Pollini, in addition to holding licenses for notable designers such as Jeremy Scott. In terms of net earnings, Aeffe has made substantial progress, with profits tripling in comparison to the first half of 2019, skyrocketing from 5.4 million euros to an impressive 17.4 million euros. In contrast, the company faced a loss of 12.5 million euros in the first half of 2020. Additionally, the group’s EBITDA (earnings before interest, taxes, depreciation, and amortization) showed a significant improvement, reaching 20.1 million euros compared to 18.3 million euros in 2019.

Aeffe attributes this growth in profitability to both increased sales and cost-saving measures implemented in various areas such as personnel, rents, and overheads. During the first half of the year, the company benefitted from subsidies provided by the Italian government, deferred advertising costs, and rent reductions for its stores and offices. These measures effectively mitigated the impact of the pandemic on Aeffe’s operations.

While Aeffe witnessed double-digit growth across all markets compared to the first half of 2020, the company has faced challenges in returning to 2019 levels, except in Europe (excluding Italy), where sales experienced a commendable 32% increase, amounting to 51.2 million euros and constituting 33% of Aeffe’s total sales. Italy, which previously accounted for 46% of the group’s revenue in the first half of 2019, now only contributes 38% after experiencing a significant 26.7% reduction in sales in the first half of 2021. Sales in Asia witnessed a notable decrease of 23.3% compared to 2019, while the Americas saw a promising increase in revenue, amounting to 14.4%.

Moschino remains the leading brand in Aeffe’s portfolio, contributing to a massive 82% of total revenue during the first half of the year. The recent acquisition of the remaining 30% stake in Moschino has further solidified its position within the group. The brand generated a remarkable 128.3 million euros in revenue during this period, only experiencing a slight decline of 1.4% compared to 2019.

As of June 30, Aeffe operates 57 company-owned boutiques and 138 franchise locations, totaling 195 monobrand stores. This marks a slight decrease from the previous year when the company had 203 stores. Retail sales constituted 18% of the group’s revenue, experiencing a decline of 39% compared to 2019, but showing a 3.5% year-over-year growth in constant currencies. On the other hand, wholesale sales, which account for 78% of the group’s revenue, experienced a significant jump of 40% compared to 2020, thus returning to pre-pandemic levels at 121 million euros.

Despite the significant challenges posed by the Covid-19 pandemic, Aeffe has managed to navigate the crisis and has witnessed promising results during the first half of 2021. With the acceleration of sales and improved profitability, the company remains hopeful for a strong recovery in the coming months.

Useful links:
1. Aeffe Official Website
2. Moschino Official Website