Global fashion companies report mixed results in FY23

STRONG – GROWTH IN SALES & PROFITS

Amazon (NASDAQ: AMZN)

Seattle-based Amazon, Inc reported fourth quarter (Q4) and full-year 2023 (FY23) results on February 1, 2024. Ending the fourth quarter on December 31, 2023, the group reported net sales of $170 billion, an increase of 14 per cent over the previous year's $149.2 billion. In the quarter, operating income and net income increased to $13.2 billion and $10.6 billion respectively, compared to $2.7 billion and $0.3 billion in the same quarter last year.

The full-year sales of $574.8 billion represented a 12 per cent increase over the previous fiscal’s $514 billion, despite the unfavourable impact of changes in currency exchange rates. Sales in the international market, North American market, and AWS market increased by 11 per cent, 12 per cent, and 13 per cent respectively. The world's largest e-commerce player delivered a major turnaround in operating and net incomes. Operating income increased to $36.9 billion compared to $12.2 billion in 2022, and net income rose to $30.4 billion ($2.90 per diluted share) from a loss of $2.7 billion ($0.27 per diluted share) in 2022. Operating cash flow increased by 82 per cent to $84.9 billion for the trailing 12 months ($46.8 billion in 2022).

The company's Q1 2024 guidance expects net sales to be between $138 billion and $143.5 billion, representing an expected growth of 8 to 13 per cent compared to the first quarter (Q1) of 2023. Foreign exchange rates are expected to have a favourable impact of approximately 40 basis points, while operating income is expected to stay in the range of $8 billion to $12 billion, compared to $4.8 billion in Q1 2023.

WEAK – NO GROWTH IN SALES & PROFITS

Aeffe S.p.A. (BIT: AEF)

On January 25, 2024, Aeffe Group reported preliminary sales figures for the full Year 2023. Aeffe S.p.A. designs, produces, and markets brand name clothing and accessories throughout Italy and the rest of the world. The company also controls fashion houses Alberta Ferretti, Narciso Rodriguez, and Ozbek, and manufactures and distributes Jean Paul Gaultier ready-to-wear clothes.

In 2023, Aeffe Group achieved revenues of €319 million, compared to €352 million in 2022, representing a decrease of 9 per cent at constant exchange rates and 9.5 per cent at current exchange rates. The company, headquartered in San Giovanni in Marignano, Italy, reported revenues (gross of eliminations between the two divisions) of the prêt-à-porter division amounting to €212.4 million, recording a year-on-year decrease of 7.6 per cent at constant exchange rates compared to 2022 (a decrease of 8.4 per cent at current exchange rates). Revenues from the footwear and leather goods division amounted to €142.1 million, also decreasing by 13.1 per cent, both at constant and current exchange rates. In this performance, revenues in its largest market, Italy, declined by 7.3 per cent at both current and constant exchange rates, and revenues from the highest contributing wholesale channel dipped by approximately 14 per cent.

Showing positive growth, Asia & rest of the world (ROW) markets increased by 2.5 per cent (at current exchange rates) and 4.9 per cent (at constant exchange rates), while the retail channel increased by 7.2 per cent and 9 per cent respectively.

Fibre2Fashion News Desk (WE - SB)