The pret-a-porter division recorded a revenue of €108.8 million in H1 FY23, marking a 9.5 per cent decrease at current exchange rates compared to H1 FY22, and a 9 per cent decline at constant exchange rates.

Revenues of the footwear and leather goods division stood at €75.3 million, a 6.1 per cent decrease at both constant and current exchange rates compared to H1 FY22, the Aeffe Group said in a press release.

In Italy, which accounts for 41.9 per cent of the group's turnover, sales decreased by 4.4 per cent to €68.2 million in H1 FY23, compared to H2 FY22. However, an 8 per cent increase was seen in the retail channel, despite a contraction of 6 per cent in the wholesale channel.

Sales in Europe, accounting for 30.8 per cent of the turnover, decreased by 15.4 per cent to €50.2 million, with the major decrease observed in the UK market.

In contrast, revenues in Asia and the rest of the world increased by 10.8 per cent to €34.4 million, representing 21.1 per cent of turnover.

Sales in America, accounting for 6.2 per cent of turnover, recorded a decrease of 30 per cent at constant exchange rates due to a general slowdown in luxury goods consumption.

The wholesale channel, representing 67.9 per cent of the turnover (€110.6 million), saw a decrease by 14.8 per cent at constant exchange rates in H1 FY23, mainly due to the American market. However, the retail channel, which represents 28.9 per cent of group sales (€47 million), increased by 20.4 per cent at constant exchange rates, thanks to ideal results in Italy (up 8 per cent) and Asia (up 117 per cent).

The group's royalty revenues, representing 3.2 per cent of consolidated turnover (€5.3 million), decreased by 27.8 per cent following the termination of some Moschino brand licenses.

Lastly, the consolidated adjusted EBIT was negative for €6 million in H1 FY23, compared to a positive €7 million in H1 FY22, showing a decrease of €13 million. The consolidated net loss for H1 FY23 stood at €11.7 million, a stark contrast to the net profit of €2.9 million in H1 FY22.

“The result for the first half of 2023 is clearly influenced by the ongoing group’s reorganisation and strategic repositioning which will lead us in the short term to be much more competitive on the global market. Although we report a decrease in revenues compared to the same period last year, we are satisfied with the results of the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand on the Chinese market,” said Massimo Ferretti, executive chairman of Aeffe.

Fibre2Fashion News Desk (DP)