Aeffe's revenue experiences a significant drop of over 23% in the initial quarter

In a challenging economic climate, luxury fashion conglomerate Aeffe SpA has reported a 23.2% decline in first quarter revenue, amounting to 61.7 million euros. The decline is a continuation of a downward trend the company has been experiencing for over a year.

The luxury market, according to reports, is expected to see minimal growth until at least 2027. This slow growth is attributed to global instability, with the United States being a significant factor. Aeffe SpA, however, remains optimistic about a possible market upswing moving forward.

The company's ready-to-wear division saw a 29.9% decline in revenue, while the footwear and leather goods division experienced a 18.3% revenue decline. In Europe, excluding Italy, sales dropped about 21%. Sales in America declined about 18%, and in Asia and the rest of the world, sales fell about 24%. In Italy, Aeffe's largest market, sales fell nearly 25% year over year.

Net losses widened to 10.1 million euros compared to a net loss of 5.6 million in the first quarter of 2023. Consolidated EBITDA was minus 1.5 million euros, versus a positive EBITDA of 6.3 million for the same period in 2024.

Despite these challenges, Aeffe SpA continues to invest in the development of its flagship brands, including Moschino, Alberta Ferretti, and Pollini.

Notable changes within the company include the departure of Alberta Ferretti, who left her namesake label in September 2024 after 44 years. She was succeeded by Lorenzo Serafini the following month. Serafini, a long-time protegé of Ferretti, is now at the helm of the Alberta Ferretti brand.

Meanwhile, Adrian Appiolaza was named creative director of Moschino in January 2024 following the death of its previous designer, Davide Renne.

However, the influx of profit from the sale of Moschino's cosmetics and perfume portfolio, which occurred in the company's full fiscal 2024 results, appears to have all but vanished in the first quarter of 2025. The royalty revenue of Aeffe SpA fell by more than 70% year over year, representing less than 1% of its sales.

Wholesale revenue of Aeffe SpA declined approximately 23% in the first quarter, representing 70% of its turnover. Retail revenue fell about 19% in the same period, accounting for 28.9% of its sales.

As Aeffe SpA navigates these challenging times, it remains committed to its brands and the continued growth of its business.

Aeffe's revenue experiences a significant drop of over 23% in the initial quarter