In the year 2017 Aeffe Group, parent company of Moschino, registered sales of 312.6 million euros (385.3 million dollars), an 11.6 percent increase at constant exchange and 11.4 percent at current exchange rates. The group also posted an excellent improvement in margins; consolidated Ebitda was equal to 36.6million euros (45 million dollars), 11.4 million euros (14 million dollars) or 45 percent increase over 2016. Due to an improvement in operating profit, profit before taxes amounted to 18.9 million euros (23 million dollars), 10.6 million euros (13 million dollars)or 127 percent increase, while net result of the group was 11.5 million euros (14 million dollars), a 7.9 million euros (9.7 million dollars) or 216 percent improvement over the last year.
Commenting on the company’s full year results, Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a statement: “The Financial year 2017 was characterized by double-digit growth in revenues and a more than proportional increase in profitability, results achieved thanks to the good performance of our brands, especially the proprietary ones and an effective business model.”
In 2017, sales in Italy, amounting to 48.7 percent of consolidated sales, registered a positive increase marking a 20.7 percent growth to 152.1 million euros (187.4 million dollars) compared to 2016, due to organic growth both in wholesale and retail channel, which both benefited from local customers and high-end tourist flows. At constant exchange rates, sales in Europe, contributing to 21.7 percent of consolidated sales, increased by 13.6 percent, driven especially by the good performance in UK, Germany and France.
The Russian market, representing 2.9 percent of consolidated sales, reported a constant trend compared to last year, showing good signs of recovery in the last quarter of the year. Sales in the United States, contributing to 6 percent of consolidated sales, posted in the period a decrease of 17.5 percent at constant exchange rates, due to the slowdown in sales in the department stores. In the rest of the world, the group’s sales totalled 65 million euros (80 million dollars), amounting to 20.8 percent of consolidated sales, recording an increase of 3.7 percent at constant exchange rates compared to 2016, driven by healthy trend in Greater China, which posted a 16.5 percent growth.
Revenues of the prêt-à-porter division amounted to 239.8 million euros (295.5 million dollars), up 11.4 percent at constant exchange and 11.1 percent at current exchange rates. Revenues of the footwear and leather goods division increased by 12.8 percent to 108.2 million euros (133.3 million dollars) both at constant and current exchange rates.
By distribution channel, in 2017, wholesale sales grew by 9.0 percent at constant exchange or 8.9 percent at current exchange rates, contributing to 70.1 percent of consolidated sales. Sales of directly-operated stores (DOS), representing 26.7 percent of consolidated sales, posted an 18.9 percent increase at constant exchange and 18.4 percent at current exchange rates), compared with 2016.
Royalty incomes, representing 3.2 percent of consolidated sales, recorded an 11.4 percent increase compared to 2016.
The company said, improvement in profitability was driven by the both divisions. Ebitda of the prêt-à-porter division amounted to 26.8 million euros (33 million dollars), a 7.9 million euros (9.7 million dollars) or 42 percent increase. Ebitda of the footwear and leather goods division amounted to 9.8 million pounds (12 million dollars), a 3.5 million euros (4.3 million dollars) or 56 percent increase over 2016. Consolidated Ebit increased 125 percent.
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