Milan - The performance of Aeffe SpA in the first half of 2024 has caused a 5.3% drop in the group's shares on the Milan Stock Exchange, reaching 0.68 euros by early Thursday afternoon.
The Italian parent company of Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini reported continued losses, with declining revenue and profitability in the first six months of the year.
As of June 30th, consolidated revenue fell by 14.9% to â¬138.6 million, compared to â¬162.9 million in the same period last year.
The ready-to-wear division saw revenue decline by 12.5% to â¬94 million, while the footwear and leather goods division experienced a more significant drop of 25%, reaching â¬56.5 million in sales.
The net loss widened to â¬20.4 million, up from â¬11.7 million in the first half of 2023.
"The unsatisfactory results of the first half of the year reflect an extremely complex market situation," stated Massimo Ferretti, Executive Chairman of Aeffe. "The slowdown in consumption in key markets like Italy and the United States has significantly impacted our group's performance. However, we are equipped to navigate this challenging environment and are confident that consumer interest in fashion goods will recover in the short term."
Ferretti expressed satisfaction with the new stylistic direction of the Moschino brand, which he believes will reposition it with renewed international appeal.
Moschino unveiled its first menswear collection and women's resort line, designed by creative director Adrian Appiolaza, in June. Appiolaza joined Moschino in late January, succeeding Davide Renne, who stepped into the role after Jeremy Scott's decade-long tenure at the brand.
Despite the challenging circumstances, the group's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) amounted to â¬400,000, compared to â¬8.5 million in the previous year.
Sales in Italy decreased by 15.5% to â¬57.6 million, representing 41.6% of the total. This decline was attributed to a 21% contraction in the wholesale channel and a 7% drop in the retail channel compared to the first half of 2023.
Revenue in Europe fell by 16.2% to â¬42.1 million, accounting for 30.4% of the total, with both distribution channels experiencing negative growth.
Aeffe sales in Asia and the Rest of the World area decreased by 8.7% to â¬31.4 million, representing 22.6% of the total. Sales in America experienced a significant drop of 25.6% to â¬7.5 million.
Wholesale revenue, representing 66.2% of sales, decreased by 17.1% to â¬91.7 million. Retail sales saw a 10.8% decline to â¬42 million, while royalties decreased by 6.2% to â¬5 million.
The operating loss amounted to â¬15.8 million, compared to an operating loss of â¬7.9 million last year.
Capital expenditure investments for the period reached â¬1.8 million, primarily allocated to work on third-party assets and software purchases.
Excluding the effects of IFRS 16, debt stood at â¬135.2 million, compared to â¬152.5 million at the end of December 2023.