The adjusted EBITDA plummeted to €12.4 million, or 3.9 per cent of revenues, from €35.6 million in FY22. The adjusted EBIT turned negative, registering at minus €20.5 million compared to a positive €1.2 million in FY22, and the net loss widened to €32.1 million from €9 million in the preceding year, the company said in a press release.
Aeffe Group reported a revenue of €319 million in FY23, a 9 per cent decrease from €352 million ($347.5 million) in FY22.
Despite challenges, revenue in Asia grew, especially with the Moschino brand expanding direct distribution.
The company’s adjusted EBITDA declined to €12.4 million from €35.6 million, and net loss widened to €32.1 million from €9 million.
The pret-a-porter division of Aeffe Group recorded revenues of €212.4 million, reflecting a 7.6 per cent decline at constant exchange rates (minus 8.4 per cent at current exchange rates) compared to FY22. The footwear and leather goods division also saw a downturn, with revenues dropping to €142.1 million, a 13.1 per cent decrease both at constant and current exchange rates.
In Italy, which accounts for 42 per cent of the group’s turnover, sales decreased by 7.3 per cent to €134 million, with retail channel sales increasing by 3 per cent and wholesale channel sales contracting by 8 per cent. Sales in Europe fell by 16.3 per cent to €98.6 million, attributed to specific country and market declines. However, in Asia and the rest of the world, the group managed to increase revenues by 4.9 per cent to €66.8 million. Sales in America declined by 20 per cent.
The wholesale channel, representing 67.1 per cent of the turnover, experienced a 13.9 per cent decrease in revenues at constant exchange rates, amounting to €213.9 million. Meanwhile, the retail channel, which constitutes 29.8 per cent of the group’s sales (€94.9 million), saw a 9 per cent increase at constant exchange rates. Royalty incomes, accounting for 3.1 per cent of consolidated turnover (€9.9 million), declined by 33.7 per cent following the termination of some licenses.
“2023 was a year of transition for our group which saw a radical reorganisation of the Moschino brand in terms of both creativity and distribution, and at the same time a transformation of its internal structure through a series of corporate mergers and incorporations. The results we are presenting today, expected but not positive, are clearly the result of these transformations and the strong investments of recent years which will bring positive effects as early as 2024,” said Massimo Ferretti, executive chairman of Aeffe.
Fibre2Fashion News Desk (DP)
