Aeffe SpA H1 FY20: sales €119 mn; net loss €11 mn

07 Aug '20

2 min read

Pic: Alberta Ferretti

Aeffe SpA, a fashion and luxury goods company, reported 31.4 per cent sales decline to €118.9 million in its first half (H1) for fiscal 2020 ended on June 30, 2020 compared to sales of €173.3 million in same period last year. Group incurred a net Loss for the six months period of €10.9 million compared to the net profit of €5.1 million in H1 FY19.

“Covid 19 pandemic impacted on the results of the first half of 2020 causing a generalised drop in consumption. The group has implemented actions such as the expansion of the outsourced production base to ensure the punctuality of the deliveries of the F/W 2020 collections and has developed an advanced “virtual showroom” to present the new collections remotely to buyers and sector operators unable to travel,” Massimo Ferretti, executive chairman of Aeffe Spa, said in a press release.

EBITDA for the period fell to €0.6 million.

In H1 FY20, sales in the Italian market decreased 34 per cent to €52.7 million (H1 FY19: €80.1 million), driven by both the wholesale and retail channels, which all suffered from the rigid measures to contrast the spread of the pandemic in terms of suspension of non-essential activities.

In Europe sales dropped 4 per cent to €37.1 million ($38.6 million). Sales in Asia and rest of the world slipped 45.2 per cent to €24.9 million (€45.5 million). Sales in America during H1 FY20 plunged 55.0 per cent to €4.1 million (€8.9 million).

By distribution channel, in H1 FY20 all distribution channels were affected by the effects of the spread of Covid-19. Wholesale revenue fell 28.3 per cent to €86.7 million (€120.9 million). Retail sales came down 41.3 per cent to €27.1 million (€46.1 million).

“The group is also heavily involved in digital marketing and e-commerce enhancement, with the aim of supporting launches and sales of its products and collections, promoting traffic both in online and offline stores and strengthening its brands’ awareness,” Ferretti said.

Fibre2Fashion News Desk (JL)

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