MILAN — Aeffe SpA continued to show signs of growth in the third quarter, generated by strong business in both retail and wholesale channels, cost-cutting measures and a more efficient structure.
Aeffe, which produces and distributes collections for Alberta Ferretti, Moschino, Pollini, Jean Paul Gaultier and Cacharel, reported a net profit of 1.2 million euros, or $1.5 million, in the three months ended Sept. 30, up from a net loss of 1.7 million euros, or $2.5 million, in the same period last year. Consolidated revenues were up 9 percent to 70.3 million euros, or $90 million.
Nine-month consolidated revenues declined by 1.4 percent to 173.2 million euros, or $221.7 million, from 175.7 million euros, or $240.2 million, resulting in net losses of 5 million euros, or $6.4 million, compared with net losses of 11.7 million euros, or $16 million, this time last year.
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Dollar figures were converted at average exchange rates for the periods to which they refer.
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“In line with our expectations, in the third quarter of 2010 sales growth has strengthened further, both in the retail and in the wholesale channels, whose turnover showed, respectively, a 21 percent and 5.6 percent growth,” commented Aeffe executive chairman Massimo Ferretti.
“Also, the profitability growth has been very encouraging, thanks to the effective implementation of cost reductions and efficiency improvement plans at group level,” he added.
Ferretti attributed the positive signs to improved spring-summer 2011 backlog figures as well.
On Sept. 30, net financial debt was at 104.2 million euros, or $133.3 million, compared with 94.2 million euros, or $141.3 million on the same date in 2009.
According to a breakdown of nine-month net sales by brand, Alberta Ferretti, Pollini and Jean Paul Gaultier registered decreases compared with the first nine months of 2009, while Moschino demonstrated a 2.9 percent increase, still remaining the company’s top performer. In September, Aeffe promoted Nicholas Kirkwood to the post of creative director of the Pollini brand, which will focus on its core accessories business and shutter its apparel division.
In the first nine months, the ready-to-wear division, which constituted 79 percent of total sales as of Sept. 30, remained relatively steady at 143.1 million euros, or $183.1 million, a decrease of 0.4 percent, whereas footwear and leather goods were down 6.1 percent to 38.7 million euros, or $49.5 million, before interdivisional eliminations. At the same time in 2009, both areas were down double-digit percentage points.
Regionally speaking, nine-month sales rose 1.4 percent in Italy and 4.9 percent in the U.S.
Revenues in Japan inched up 0.4 percent, while Russia posted a 2.7 percent decrease. Sales in the rest of the world took the heaviest hit, falling 17.9 percent to 21.5 million euros, or $27.5 million.
The company did not provide a full-year outlook.