The ongoing coronavirus outbreak in China is predicted to have a negative impact on the first-quarter results of Aeffe Spa, the Italian fashion house that owns popular brands like Alberta Ferretti and Moschino. Marcello Tassinari, the managing director of Aeffe, voiced his concerns regarding this matter during Alberta Ferretti’s fashion show in Milan. Tassinari highlighted that due to the current situation, the company is unlikely to pay a dividend on its 2019 results, emphasizing the need for caution. Aeffe’s revenues from China account for approximately 10% of its total revenue. However, a company spokesperson later clarified that the impact on the financials of Aeffe is expected to be minimal.
Despite the concerns raised by the managing director, Aeffe acknowledged the potential challenges posed by the coronavirus outbreak, particularly in China. With popular brands like Alberta Ferretti and Moschino under its umbrella, Aeffe is well-aware of the impact that the virus can have on its business operations, especially considering that China constitutes a significant portion of its revenue.
During Alberta Ferretti’s fashion show in Milan, Marcello Tassinari spoke openly about the potential negative consequences and uncertainties brought about by the coronavirus outbreak. In light of this situation, Tassinari stated that it is unlikely that the company will pay a dividend on its 2019 results. This cautious approach reflects the company’s focus on safeguarding its financial stability amidst the ongoing uncertainty.
Although China accounts for approximately 10% of Aeffe’s revenues, a company spokesperson later clarified that the expected impact on the financials is anticipated to be minimal. While the situation in China remains fluid and volatile, Aeffe aims to mitigate any potential repercussions and navigate through this challenging period as smoothly as possible.
To remain cautious and adaptable in response to the outbreak is crucial for Aeffe. The impact of the coronavirus on the fashion industry, particularly in China, highlights the importance of contingency planning and being prepared for unexpected disruptions. Aeffe’s decision not to pay a dividend on its 2019 results demonstrates their commitment to maintaining financial stability during this uncertain time.
1. For more information on Aeffe Spa and its portfolio of fashion brands, visit their official website: https://www.aeffe.com/
2. To learn more about the impact of the coronavirus outbreak on the fashion industry, you can read this article: https://www.businessoffashion.com/articles/intelligence/coronavirus-and-fashion-a-growing-list-of-axed-conferences-shows-and-airline-sponsorships