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 hurt the group’s revenue in the first nine months of the year.
As of September 30, net profit was 35.2 million euros, compared to a loss of 17.8 million euros in the same period last year.
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Consolidated revenue fell 17.8 percent to 207.8 million euros, compared to 252.8 million euros in the first nine months of 2023.
Other income was 91.5 million euros, including the capital gain related to the Moschino beauty business.
In addition to Moschino, Aeffe controls the brands Alberta Ferretti and Pollini.
The ready-to-wear division’s revenue was 139.9 million euros, down 17.5 percent, while footwear and leather goods revenue was 86.7 million euros, down 22.6 percent.
As reported, in September, Aeffe revealed that he was selling Moschino’s beauty business to Euroitalia for 98 million euros, transferring ownership of the brand’s cosmetics, fragrances, scented candles, rooms and textile fragrances.
Euroitalia has been the licensee of the brand’s beauty products since 1987. Since then, the companies have launched flagship fragrances and commercial successes, from Moschino by Moschino and the Cheap & Chic scent by Moschino, known for its olive-shaped flacon Oyl, 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 change. The former creative director named Adrian Appiolaza last January and his first collection for the brand bowed in February in Milan. Aeffe has made extraordinary strategic investments totaling 90 million euros in taking full control of Moschino in 2021by buying the 30 percent share it did not already have and the distribution change in China for the Moschino brand.
In September, after unveiling her spring 2025 collection, designer Alberta Ferretti revealed she was leaving the eponymous brand she launched in 1981. Alluding to further changes, Aeffe released a statement at the time saying that after Ferretti’s decision, Aeffe will “continue its careful and in-depth analysis of the roles and functions of the various departments with the aim of reorganizing its human resources internally to ensure even greater efficiency.”
In October, Aeffe promoted Lorenzo Serafini to succeed Ferretti who headed 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 general manager of the Italian brand, a new role. Together with Serafini, she is tasked with driving the growth of the fashion house, focusing on expanding international markets. Lamprecht has extensive experience in the sector having worked over the years with luxury brands from Ferragamo and Valentino to Etro.
In the first nine months, and the end of the Moschino beauty sale, Aeffe’s earnings before interest, taxes, depreciation and amortization amounted to 90.9 million euros, a margin of 43.8 percent on revenue, compared to 12.2 million euros last year.
The operating profit was 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 our group’s performance in the first nine months of 2024,” said Massimo Ferretti, executive chairman of Aeffe. “We are aware of the complexities of this historic moment, which is also characterized by significant political and social instability, but the strategic decisions we have made in the last few months and the operations completed show a deep awareness of the potential we know 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 by 17.1 percent to 89.5 million euros, representing 43.1 percent of the total. Performance was constrained by a 23 percent contraction in the wholesale channel and a 7 percent reduction in its retail network in the country.
Revenue 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, sales amounted to 42.8 million euros, a decrease of 19.2 percent and accounted for 20.6 percent of the total.
Revenue in America was down 15.3 percent to 11.9 million euros, with a turnover rate of 5.7 percent.
The wholesale channel fell by 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.
Dues decreased by 7.4 percent to 7.2 million euros.
As of September 30, net of the effect of IFRS 16, net debt was 72.3 million euros, compared to 152.5 million euros at the end of December last year.
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