MILAN — The sale of Moschino‘s beauty business in September boosted parent Aeffe Spa‘s profitability but the slowdown in the luxury industry and challenges in its wholesale distribution impacted the group’s revenues in the first nine months of the year.
As of Sept. 30, net profit amounted to 35.2 million euros, compared with a loss of 17.8 million euros in the same period last year.
Consolidated revenues fell 17.8 percent to 207.8 million euros, compared with 252.8 million euros in the first nine months of 2023.
Other revenues totaled 91.5 million euros, including the capital gain relating to Moschino beauty business.
In addition to Moschino, Aeffe controls the Alberta Ferretti and Pollini brands.
Revenues of the ready-to-wear division totaled 139.9 million euros, down 17.5 percent, while revenues of footwear and leather goods amounted to 86.7 million euros, a decrease of 22.6 percent.
As reported, in September, Aeffe revealed it was selling Moschino‘s beauty business to Euroitalia for 98 million euros, transferring the ownership of the brand’s cosmetics, fragrances, scented candles, rooms and textile perfumes.
Euroitalia has been the licensee of the brand’s beauty products since 1987. Ever since, the companies launched key fragrances and commercial successes, ranging from Moschino by Moschino and the Cheap & Chic by Moschino scent, best known for its flacon shaped in Olive Oyl’s silhouette, to Glamourous Fruity Floral with its heart-shaped bottle and the teddy bear-shaped Toy 2.
Moschino and Alberta Ferretti are going through a phase of changes. The former named Adrian Appiolaza creative director last January and his first collection for the brand bowed in February in Milan. Aeffe has made extraordinary strategic investments for a total of 90 million euros relating to taking full control of Moschino in 2021 through the purchase of the 30 percent stake it did not already own and the change of distribution in China for the Moschino brand.
In September, after unveiling her spring 2025 collection, designer Alberta Ferretti revealed she was exiting the namesake brand she launched in 1981. Pointing to additional changes, Aeffe at the time issued a statement saying that, following Ferretti’s decision, Aeffe “will proceed with a careful and in-depth analysis of the roles and functions of the various departments with the aim of internally reorganizing its human resources in order to guarantee even greater efficiency.”
In October, Aeffe promoted Lorenzo Serafini to succeed Ferretti at the helm of the brand and his first collection will be presented in February. He joined the group in 2014 to design the Philosophy label, which will be integrated into the Alberta Ferretti line from the fall 2025 season. Earlier this month, the group appointed Alexandra Lamprecht as the Italian brand’s general manager, a new role. With Serafini, she is tasked with driving the growth of the fashion house, with a focus on expanding international markets. Lamprecht has built an extensive experience in the sector working over the years with luxury brands ranging from Ferragamo and Valentino to Etro.
In the first nine months, and lifted by the Moschino beauty sale, Aeffe’s earnings before interest, taxes, depreciation and amortization totaled 90.9 million euros, a margin of 43.8 percent on revenues, compared with 12.2 million euros last year.
Operating profit amounted to 66.6 million euros compared to an operating loss of 11.7 million euros.
“The slowdown in global consumption in the fashion and luxury sectors had an impact on the performance of our group in the first nine months of 2024,” said Massimo Ferretti, executive chairman of Aeffe. “We are aware of the complexities of this historical moment, also characterized by significant political and social instability, but the strategic decisions we have made over the last few months and the finalized operations reflect a profound awareness of the potential we know we have within our structure. I am sure that the reorganization of the Moschino brand and the rebranding of the Alberta Ferretti label will open up new interesting scenarios.”
Sales in Italy decreased 17.1 percent to 89.5 million euros, representing 43.1 percent of the total. The performance was dented by a 23 percent contraction of the wholesale channel and a 7 percent decrease in its retail network in the country.
Revenues in Europe fell 18.3 percent to 63.6 million euros, accounting for 30.6 percent of the total.
In Asia and the Rest of the World area, sales amounted to 42.8 million euros, decreasing 19.2 percent and representing 20.6 percent of the total.
Revenues in America were down 15.3 percent to 11.9 million euros, with an incidence on turnover of 5.7 percent.
The wholesale channel fell 20.4 percent to 137.6 million euros, representing 66.2 percent of the total.
Retail was down 12.8 percent to 63 million euros, accounting for 30.3 percent of the total.
Royalties were down 7.4 percent to 7.2 million euros.
As of Sept. 30, net of the IFRS 16 effect, net debt amounted to 72.3 million euros, compared with 152.5 million euros at the end of December last year.
