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Moschino Parent Aeffe 2023 Sales Dented by U.S., Europe

MILAN — A slowdown in the European and American markets and at wholesale impacted the performance of Aeffe SpA in the 12 months ended Dec. 31, despite a gain in Asia and in the group’s retail channel.

Last year, revenues decreased 9.5 percent to 319 million euros compared with 352 million euros in 2022.

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Aeffe’s brands include Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Polliniand. The company is publicly listed on the Milan Stock Exchange, which reacted to the numbers by sending shares down 3.37 percent to 0.89 euros at 5 p.m. CET on Thursday. Shares closed down 1.74 percent at 0.90 euros at the end of trading.

However, Massimo Ferretti, executive chairman, said the decrease was expected and expressed satisfaction with the performance of the retail channel, linked to the reorganization of distribution in China, where Aeffe took direct control of the Moschino stores in 2022.

“As a group we have great potential for growth in the retail world, just as we hope for a progressive restart of the wholesale channel, especially in Europe and the United States where we are strengthening our relationships with the highest profile commercial partners while awaiting the identification of the new creative director of the Moschino brand,” Ferretti said.

The industry was shaken last November by the sudden and premature death of Davide Renne at 46, who had been named creative director of Moschino. Hailing from Gucci, Renne started working at the Milan-based brand on Nov. 1, and his first collection was to debut for fall 2024 in February during Milan Fashion Week. He succeeded Jeremy Scott, who exited the brand last March after a 10-year tenure.

“Aeffe Group continues to firmly believe in the values of creativity, quality and service toward its customers, elements which I believe will allow us to rationally address the instabilities of international markets, mainly due to the very complicated geopolitical situation that characterizes the current moment,” Ferretti concluded.

In 2023, sales of Aeffe’s ready-to-wear division were down 8.4 percent to 212.4 million euros while the footwear and leather goods division decreased 13.1 percent to 142.1 million euros.

Revenues in Italy, Aeffe’s main country, accounted for 42 percent of the total, were down 7.3 percent to 134 million euros, dented by an 8 percent contraction in the wholesale channel. Retail sales were up 3 percent in Italy.

Revenues in Europe tumbled down 16.3 percent to 98.6 million euros, representing 31 percent of the total. Revenues in America fell 21. 3 percent to 19.3 million euros.

In Asia and the Rest of the World area, sales amounted to 66.8 million euros, up 2.4 percent. At constant exchange rates, sales grew 4.9 percent in the regions.

As reported, Aeffe took control of Moschino’s distribution in mainland China, signaling the increasing relevance of that market for the label. This involved around 20 stores, which had been operated for the previous 10 years by Scienward Fashion and Luxury (Shanghai) Co. Ltd.

The retail channel posted a 7.2 percent increase to 94.9 million euros, while wholesale sales fell 14 percent to 213.9 million euros, accounting for 67.1 percent of the total.

Royalties plunged 33.7 percent to 9.8 million euros, following the termination of some licenses for the Moschino brand.

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