Apparel Group Aeffe Net Profit Plunged 44.5%

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Aeffe's revenue rose by 7% to 268 million 800 thousand euros, thanks to strong sales of products, accelerated growth in the US and China market, and favorable exchange rates.

However, some brands' excessive promotional activities and huge advertising expenses resulted in a sharp fall of net profit of 44.5% to 1 million 520 thousand euros.

Aeffe group main production

Accessories and footwear, including Alberta Ferretti, Philosophy, Moschino and Pollini.

The group pointed out that in order to further strengthen the brand strength of Moschino and Alberta Ferretti, the group spent a lot of money on marketing and advertising activities.

It also includes the introduction of Moschino men's wear series and the re launch of Philosophy brand.

Under such a strategy, the group's investment in its brand in 2015 increased the popularity of its brand.

Compared with the same period in 2015, the group's brand 2016 spring series backlog of orders has increased by 14.3%.

The order of Philosophy brand 2016 spring series designed by Lorenzo Serafini increased by 40%.

Aeffe group chief financial officer Marcello Tassinari believes that this trend will continue to 2016 autumn and winter series.

According to the Aeffe group's earnings report, the group's total revenue rose 7% to 268 million 800 thousand euros, and net profit plunged 44.5% to 1 million 520 thousand euros, mainly due to excessive promotional activities of some brands and huge advertising expenses.

By region, sales increased in all regions except Russia and Japan.

Italy is the largest market in the group, which accounts for almost half of the group's total sales. The region's total revenue has risen by 5.4%, surpassing the growth of other European markets.

Poor performance in Eastern Europe has been a drag on major European markets.

As a result, other European markets grew by only 0.5%.

Russia accounted for 3.4% of the group's total sales, and its total revenue fell by 45%. The group thought it was mainly due to the current economic situation in Russia.

In addition, because the group promoted consumption in the Russian region with a significant discount, the profit margin of the region further declined.

Greater China and the Middle East account for 20% of the group's total sales, of which the Greater China region performs well with a 72% increase.

The United States is still a relatively small market, which accounts for 8.3% of the group's total sales.

In terms of fixed exchange rates, sales in the region increased by 18.1%.

Massimo Ferretti, executive director of Aeffe group, expects two new Moschino stores in the us to lead sales growth.

The two new stores opened in New York in early 2015 and opened in Losangeles in August this year.

At present, the group has three Alberta Ferretti outlets in the United States, which was opened in Losangeles in 2008.

Massimo Ferretti, CEO of Aeffe group, believes that although the macro-economy is full of uncertainties, the group remains optimistic about the future.

There was a positive trend in the first two months of this year, and the latest series in different fashion week also received good feedback.

For the 2016 development prospects, the retail sales trend of Alberta Ferretti and Moschino brands will remain positive, while the sales volume of the group's brand 2016 spring series is 14% higher than that of the same period last year.