The Aeffe Group, a leading Italy-based firm in the luxury fashion sector, has reported revenues of €138.6 million (approximately $150 million) for the first half of fiscal 2024 (H1 FY24), a 14.9 per cent decrease from €162.9 million in the same period of 2023. At constant exchange rates, the decline was 14.6 per cent.

In H1 FY24, consolidated EBITDA was marginally positive at €0.4 million, representing a 0.3 per cent margin on turnover. This is a significant drop from the EBITDA of €8.5 million, with a 5.2 per cent margin on turnover, recorded in H1 FY23. Consolidated EBIT was negative at €15.8 million, worsening from a negative €7.9 million in H1 FY23. The group's net loss amounted to €20.4 million, compared to a net loss of €11.7 million in the previous year.

The pret-a-porter division achieved revenues of €94 million, showing a decrease of 12.5 per cent at current exchange rates and 12.9 per cent at constant exchange rates compared to the same period in FY23. The footwear and leather goods division reported revenues of €56.5 million, a 25 per cent decline at current exchange rates, with the same decrease at constant exchange rates, the company said in a press release.

Regionally, sales in Italy, which accounted for 41.6 per cent of turnover, decreased by 15.5 per cent to €57.6 million. The wholesale channel in Italy contracted by 21 per cent, while the retail channel saw a 7 per cent decrease compared to the first half of FY23. In Europe, which contributed 30.4 per cent to turnover, sales dropped by 16.2 per cent to €42.1 million, with declines in both wholesale and retail channels across specific countries and markets.

In Asia and the rest of the world, the group achieved revenues of €31.4 million, representing 22.6 per cent of turnover, down by 7.4 per cent compared to H1 FY23. Sales in America, accounting for 5.4 per cent of turnover, decreased by 25.6 per cent at constant exchange rates.

The revenues from the wholesale channel, which represents 66.2 per cent of turnover (€91.7 million), decreased by 17.0 per cent at constant exchange rates. Retail channel revenues, representing 30.3 per cent of group sales (€42 million), showed a 10 per cent decrease at constant exchange rates compared to the same period in the previous year. Revenues from royalties, which make up 3.5 per cent of consolidated turnover (€5 million), decreased by 6.2 per cent compared to the same period in FY23.

“The unsatisfactory results of the first half of the year are the reflection of an extremely complex market situation. The slowdown in consumption in key countries for us, such as Italy and the US, has significantly impacted our group performance. Aware of the complexity of the moment we are experiencing, we are equipping ourselves to face the complex situation and we are confident that we will see a recovery of consumer interest in fashion goods in the short term. We are satisfied with the new stylistic course of the Moschino brand, which will allow us to reposition the brand with a new international appeal,” said Massimo Ferretti, executive chairman of Aeffe.

Fibre2Fashion News Desk (DP)