Italy’s Aeffe announced that company revenues and profits both experienced double-digit growth in first quarter 2018, boosted by excessive increases in Greater China.
The European group, which owns labels Alberta Ferretti, Philosophy by Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier, saw revenue reach €95.2 million, an increase of 20.3% (at constant exchange rates).
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In the three months ended March 31, Aeffe’s apparel sales rose 18.3% to €72.1 million, while footwear and leather goods revenues skyrocketed to €32 million, an increase of 26.2%.
Greater China recorded the biggest growth by geographic market, with sales in the region jumping 67%, driving the rest of the world revenues to a 45% increase and contributing 22% of total sales for the quarter.
After posting a 20.7% increase last year, Aeffe’s domestic market, Italy, which accounts for 47% of total revenues, grew 18.2%, up to €45.3 million. Europe increased by 15%, lead by sales upticks in the UK, Germany and Spain.
Russia, Aeffe’s smallest region in terms of market share (just 3%), rose 12.6%, which offset a downturn in the US; the region recording a decrease of 11%, on the back of poor performances in department stores.
Wholesale revenues accounted for 74.7% of Aeffe’s total and grew 24.4%, with the group’s retail channel lifting 8.5%. Royalty revenues increased 19%, said Aeffe.
The group’s first quarter EBITDA was €20.3 million, up 32%, while net income soared 39%, to €11.3 million for the quarter period.
“The group is focused on a constant organic growth path for proprietary brands and the continuous progression of revenues and profitability, both in prêt-à-porter and footwear and leather goods divisions, demonstrates the effectiveness of our stylistic proposal along with management and investments strategies implemented,” said executive chairman Massimo Ferretti.
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“Considering that the fall 2018 season sales campaign ended with an increase of 12 percent, we continue to look forward positively.”
As of March 31, the number of directly operated stores remain unchanged, compared with the end of 2017, standing at 63, while franchised stores totalled 181 compared with 185 in the first quarter of 2017, due to closures in Italy and Spain.