Aeffe Sees 2018 Profits Gain
China, tourist spending and online sales helped boost the performance of the Italian fashion group last year.
MILAN — “This was one of the best years in our history,” Marcello Tassinari, general director of Aeffe SpA, told WWD on Tuesday. And he had good reason to be upbeat — the Italian fashion group closed 2018 with a 46 percent gain in net profits. In the 12 months ended Dec. 31, net earnings climbed to 16.7 million euros, compared with 11.5 million euros in 2017.
Sales rose 10.9 percent to 346.6 million euros, compared with 312.6 million euros in 2017. At constant exchange rates, revenues were up 11.2 percent. Sales of the ready-towear division amounted to 265.6 million euros, up 10.8 percent. The footwear and leather goods division was up 9.3 percent to 118.3 million euros.
Executive chairman Massimo Ferretti touted the company’s “effective strategy,” based on “significant investments in the stylistic research for the portfolio’s brands, the strengthening of business relationships with the wholesale network and a calibrated retail presence,” and trumpeted an efficient business model.
“We are pleased to confirm a satisfactory progression of margins, more than proportional to the growth in turnover.
For the current year, we hope for a path of further development for our brands.”
Aeffe, publicly listed on Italy’s Star segment of the Italian Bourse, comprises the Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini brands and produces and distributes the Jeremy Scott and Cédric Charlier labels.
In 2018, earnings before interest, taxes, depreciation and amortization were up 18.5 percent to 43.3 million euros, with an incidence on sales of 12.5 percent, lifted by a growth in sales and a lower incidence of operating costs.
Operating profit climbed 30.6 percent to 29.6 million euros.
Sales in Italy were up 10.7 percent to 168.5 million euros, representing 48.6 percent of total revenues. That incidence decreased to 37 percent net of the effect