Italian fashion group Aeffe ended 2019 with a modest increase in revenue, marking a slowdown compared to its double-digit growth in the previous year. The company’s consolidated revenue for the year reached €352.4 million, representing a 1.4% year-on-year increase. Aeffe is renowned for its portfolio of brands, which includes Alberta Ferretti, Philosophy, Moschino, and Pollini, as well as licenses for Jeremy Scott and Cédric Charlier. The growth in revenue was mainly driven by strong sales in Asia and Europe, excluding Italy.

Amongst Aeffe’s brands, Moschino emerged as the star performer, accounting for 75% of the group’s total sales and generating over €262.5 million in revenue for 2019. However, the other brands faced challenges. Alberta Ferretti experienced a significant decrease in sales by nearly 19%, while Philosophy and Pollini witnessed a slight decline of 0.3%. The licensed brands also experienced a decline of 10.2%.

Regionally, Aeffe witnessed growth in all areas except North America and Italy. Asia and the rest of the world contributed to a quarter of the company’s annual revenue, with sales increasing by 7.5% at constant exchange rates. China and South Korea were the primary drivers of this growth, with respective increases of 7.2% and 14.6%. Europe, excluding Italy, also saw a rise of 8.1%, with England, Germany, and Eastern Europe playing significant roles.

However, sales in America declined by 4.5%, while Italy experienced a similar decrease, posing a greater challenge for the company. Italy remains Aeffe’s largest market, accounting for 45.8% of total sales. The decline can be attributed to a weakened wholesale network, as wholesale sales globally decreased by 1.8%. On the other hand, retail sales through the company’s 65 stores saw positive growth of 7.5%.

Aeffe’s licensing business saw a notable increase in royalty revenues, rising by 17.7% and generating €13.7 million in 2019. This highlights the company’s strength in leveraging strategic partnerships through licensing.

Overall, Aeffe’s performance in 2019 showcased a mixed bag of results. While the company achieved growth in certain regions and its licensing business, it faced challenges in key markets such as Italy and America. To ensure future growth, Aeffe will need to strategize and adapt to the continuously evolving fashion landscape.

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