MILAN — Italian fashion group Aeffe SpA reported a 0.5 percent gain in 2008 consolidated sales and forecast a difficult year ahead.
For the 12 months through Dec. 31, Aeffe, which operates the Alberta Ferretti, Moschino and Pollini brands and produces collections for Jean Paul Gaultier, among others, generated sales of 294.7 million euros, or $433.6 million at average exchange, thanks largely to gains in emerging markets. At constant exchange and excluding the effects of the sale of a stake in the Narciso Rodriguez brand to Liz Claiborne Inc. in May 2007, sales gained 3.2 percent.
“The economic situation remains difficult and currently we do not see signs of improvement in the next 12 months. As such, our group is still further focusing on cost controls in all its divisions,” Aeffe chairman Massimo Ferretti stated. “Nevertheless, we believe that the clear position of our brands in the luxury segment of the market and our flexible business model will help the group to overcome this crisis.”
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Sales at Alberta Ferretti and Moschino, which together account for more than two-thirds of the group’s turnover, increased 3.5 and 4.4 percent, respectively. However, business was down at all other brands, falling 2.6 percent at Pollini, 5.5 percent at Jean Paul Gaultier and 23.8 percent at Blugirl, Authier, Narciso Rodriguez and Basso + Brooke combined.
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Aeffe released the figures after the close of the Italian Bourse on Tuesday. The group’s share price gained 1.6 percent to 0.58 euros, or 75 cents, on Wednesday.
Also Wednesday, Aeffe said it had terminated license agreements with Elite Group SpA for the production and distribution of Alberta Ferretti and Pollini eyewear, after Elite fell into financial difficulty.
An Aeffe spokeswoman confirmed that the Italian fashion group was seeking a replacement for Elite and had contacted other eyewear manufacturers, but no deal had been struck.
Aeffe signed a seven-year deal with Elite for Alberta Ferretti in January 2008 and presented the first collection at Mido in May. Elite held the Pollini license from 2005.
The agreements accounted for around 0.1 percent of Aeffe’s turnover in 2008.