Aeffe

Annual / Quarterly Financial Statement • May 13, 2015

Disclaimer INTERIM CONSOLIDATED FINANCIAL STATEMENT AT 31 MARCH 2015

This Interim consolidated financial statement at 31 March 2015 has been translated into English solely for the convenience of the International reader. In the event of conflict or inconsistency between the terms used in the Italian Version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the official document.

SUMMARY

INTERIM CONSOLIDATED FINANCIAL STATEMENT AT 31 MARCH 2015	1
CORPORATE BOARDS OF THE PARENT COMPANY	3
ORGANISATION CHART	4
BRANDS PORTFOLIO	5
HEADQUARTERS	6
SHOWROOMS	7
MAIN FLAGSHIPSTORE LOCATIONS UNDER DIRECT MANAGEMENT	8
MAIN ECONOMIC-FINANCIAL DATA	9
FINANCIAL STATEMENTS	10
INTERIM MANAGEMENT REPORT	14
EXPLANATORY NOTES	15

Corporate boards of the Parent Company

Chairman

Massimo Ferretti

Deputy Chairman Alberta Ferretti

Chief Executive Officer

Simone Badioli

Directors

Marcello Tassinari – Managing Director Roberto Lugano Pierfrancesco Giustiniani Marco Salomoni Sabrina Borocci

President

Pier Francesco Sportoletti

Statutory Auditors

Fernando Ciotti Daniela Saitta

Alternate Auditors

Barbara Ceppellini Luca Sapucci

Board of Compensation Committee

President

Sabrina Borocci

Members Roberto Lugano Pierfrancesco Giustiniani

Board of Internal Control Committee

President Roberto Lugano Members

Sabrina Borocci Pierfrancesco Giustiniani

Board of Directors Board of Statutory

Organisation chart

Brands portfolio

Headquarters

AEFFE

Via Delle Querce, 51 47842 - San Giovanni in Marignano (RN) Italy

MOSCHINO

Via San Gregorio, 28 20124 - Milan Italy

POLLINI

Via Erbosa I° tratto, 92 47030 - Gatteo (FC) Italy

VELMAR

Via Delle Querce, 51 47842 - San Giovanni in Marignano (RN) Italy

Showrooms

MILAN (FERRETTI – POLLINI – CEDRIC CHARLIER – UNGARO) Via Donizetti, 48 20122 - Milan Italy

LONDON

(FERRETTI – MOSCHINO) 28-29 Conduit Street W1S 2YB - London UK

PARIS

((FERRETTI – MOSCHINO – POLLINI) 43, Rue du Faubourg Saint Honoré 75008 - Paris France

NEW YORK

(GROUP) 30 West 56th Street 10019 - New York USA

MILAN

(MOSCHINO) Via San Gregorio, 28 20124 - Milan Italy

MILAN

(LOVE MOSCHINO) Via Settembrini, 1 20124 - Milan Italy

PARIS

(CEDRIC CHARLIER) 28 Rue de Sevigne 75004 - Paris France

PARIS

(UNGARO) 2 Avenue Montaigne 75008 - Paris France

Main flagshipstore locations under direct management

ALBERTA FERRETTI

Milan Rome Capri London Los Angeles

POLLINI

Milan Venice Bolzano Varese Verona

SPAZIO A

Florence Venice

MOSCHINO

Milan Rome Capri Paris London Berlin Los Angeles Seoul Pusan Daegu

Main economic-financial data

		I Q	I Q
		2014	2015
Total revenues	(Values in millions of EUR)	69.5	73.3
Gross operating margin (EBITDA)	(Values in millions of EUR)	10.7	12.5
Net operating profit/(loss) (EBIT)	(Values in millions of EUR)	7.7	9.4
Profit/(loss) before taxes	(Values in millions of EUR)	6.1	8.3
Net profit/(loss) for the Group	(Values in millions of EUR)	3.2	4.6
Basic earnings per share	(Values in units of EUR)	0.032	0.045
Cash Flow (net result + depreciation)	(Values in millions of EUR)	6.5	8.3
Cash Flow/total revenues	Ratio	9.3	11.3

		31 December	31 March	31 December	31 March
		2013	2014	2014	2015
Net capital invested	(Values in millions of EUR)	232.0	235.1	231.5	249.2
Net financial indebtedness	(Values in millions of EUR)	88.6	88.3	83.6	95.4
Group net equity	(Values in millions of EUR)	126.8	129.8	130.1	135.3
Group net equity per share	(Values in units of EUR)	1.2	1.2	1.2	1.3
Current assets/Current liabilities	Ratio	2.2	2.4	2.1	2.5
Current assets less invent./Current liabilities (ACID Test)	Ratio	1.0	1.2	1.0	1.2
Net financial indebtedness/Net equity	Ratio	0.6	0.6	0.6	0.6

Financial statements

Income statement at 31 March

(Values in units of EUR)	Notes	I Q	% on	I Q	% on	Change	%
		2015	revenues	2014	revenues
REVENUES FROM SALES AND SERVICES	(1)	71,224,287	100.0%	67,639,493	100.0%	3,584,794	5.3%
Other revenues and income		2,056,456	2.9%	1,871,856	2.8%	184,600	9.9%
TOTAL REVENUES		73,280,743	102.9%	69,511,349	102.8%	3,769,394	5.4%
Changes in inventory		2,788,128	3.9%	( 1,980,234)	(2.9%)	4,768,362	(240.8%)
Costs of raw materials, cons. and goods for resale		( 22,348,583)	(31.4%)	( 18,630,494)	(27.5%)	( 3,718,089)	20.0%
Costs of services		( 18,226,285)	(25.6%)	( 16,467,404)	(24.3%)	( 1,758,881)	10.7%
Costs for use of third parties assets		( 5,714,115)	(8.0%)	( 5,614,004)	(8.3%)	( 100,111)	1.8%
Labour costs		( 15,108,996)	(21.2%)	( 14,998,023)	(22.2%)	( 110,973)	0.7%
Other operating expenses		( 2,131,477)	(3.0%)	( 1,102,868)	(1.6%)	( 1,028,609)	93.3%
Total Operating Costs		( 60,741,328)	(85.3%)	( 58,793,027)	(86.9%)	( 1,948,301)	3.3%
GROSS OPERATING MARGIN (EBITDA)	(2)	12,539,415	17.6%	10,718,322	15.8%	1,821,093	17.0%
Amortisation of intangible fixed assets		( 1,769,692)	(2.5%)	( 1,656,944)	(2.4%)	( 112,748)	6.8%
Depreciation of tangible fixed assets		( 1,302,978)	(1.8%)	( 1,282,593)	(1.9%)	( 20,385)	1.6%
Revaluations / (write-downs) and provisions		( 54,405)	(0.1%)	( 31,625)	(0.0%)	( 22,780)	72.0%
Total Amortisation, write-downs and provisions		( 3,127,075)	(4.4%)	( 2,971,162)	(4.4%)	( 155,913)	5.2%
NET OPERATING PROFIT / LOSS (EBIT)		9,412,340	13.2%	7,747,160	11.5%	1,665,180	21.5%
Financial income		70,430	0.1%	63,738	0.1%	6,692	10.5%
Financial expenses		( 1,215,386)	(1.7%)	( 1,698,276)	(2.5%)	482,890	(28.4%)
Total Financial Income/(expenses)		( 1,144,956)	(1.6%)	( 1,634,538)	(2.4%)	489,582	(30.0%)
PROFIT / LOSS BEFORE TAXES		8,267,384	11.6%	6,112,622	9.0%	2,154,762	35.3%
Total Income Taxes		( 3,064,149)	(4.3%)	( 2,569,831)	(3.8%)	( 494,318)	19.2%
NET PROFIT / LOSS		5,203,235	7.3%	3,542,791	5.2%	1,660,444	46.9%
(Profit) / loss attributable to minority shareholders		( 637,016)	(0.9%)	( 309,074)	(0.5%)	( 327,942)	106.1%
NET PROFIT / LOSS FOR THE GROUP	(3)	4,566,219	6.4%	3,233,717	4.8%	1,332,502	41.2%

Reclassified balance sheet

(Values in units of EUR)	Notes	31 March	31 December	31 March
		2015	2014	2014
Trade receivables		46,243,233	36,884,748	41,228,301
Stocks and inventories		89,600,033	83,867,256	72,764,934
Trade payables		( 49,395,109)	( 55,052,139)	( 41,750,851)
Operating net working capital		86,448,157	65,699,865	72,242,384
Other short term receivables		26,389,833	24,881,205	22,978,892
Tax receivables		7,726,956	8,531,445	6,550,652
Other short term liabilities		( 16,313,718)	( 14,319,321)	( 14,212,817)
Tax payables		( 3,199,223)	( 3,124,892)	( 2,734,414)
Net working capital	(4)	101,052,005	81,668,302	84,824,697
Tangible fixed assets		63,673,923	63,770,590	64,289,853
Intangible fixed assets		127,000,108	127,926,760	128,746,963
Equity investments		83,268	80,268	30,250
Other fixed assets		4,794,776	4,701,444	4,805,248
Fixed assets	(5)	195,552,075	196,479,062	197,872,314
Post employment benefits		( 7,115,391)	( 7,457,710)	( 7,154,569)
Provisions		( 1,405,175)	( 2,047,384)	( 1,184,159)
Assets available for sale		436,885	436,885	436,885
Liabilities available for sale		-	-	-
Long term not financial liabilities		( 14,480,132)	( 14,080,132)	( 14,045,132)
Deferred tax assets		12,230,185	13,368,052	11,500,098
Deferred tax liabilities		( 37,032,979)	( 36,828,733)	( 37,183,741)
NET CAPITAL INVESTED		249,237,473	231,538,342	235,066,393
Share capital		25,371,407	25,371,407	25,371,407
Other reserves		114,699,531	115,285,814	119,399,861
Profits / (Losses) carried-forward		( 9,371,143)	( 13,341,832)	( 18,230,264)
Profit / (Loss) of the period		4,566,219	2,741,670	3,233,717
Group interest in shareholders' equity		135,266,014	130,057,059	129,774,721
Minority interests in shareholders' equity		18,551,738	17,914,722	16,953,390
Total shareholders' equity	(6)	153,817,752	147,971,781	146,728,111
Short term financial receivables		( 1,460,018)	( 1,000,000)	( 1,580,000)
Cash		( 7,529,514)	( 6,691,668)	( 5,995,908)
Long term financial liabilities		14,579,436	12,752,273	14,986,786
Long term financial receivables		( 2,067,200)	( 1,718,063)	( 1,393,386)
Short term financial liabilities		91,897,017	80,224,019	82,320,790
NET FINANCIAL POSITION	(7)	95,419,721	83,566,561	88,338,282
SHAREHOLDERS' EQUITY AND NET FINANCIAL INDEBTEDNESS		249,237,473	231,538,342	235,066,393

Cash flow

(Values in thousands of EUR)	Notes	I Q	F Y	I Q
		2015	2014	2014
OPENING BALANCE		6,692	7,524	7,524
Profit before taxes		8,267	6,113	6,113
Amortisation / write-downs		3,073	13,657	2,971
Accrual (+)/availment (-) of long term provisions and post employment benefits		( 984)	507	( 659)
Paid income taxes		( 1,648)	( 3,584)	( 2,214)
Financial income (-) and financial charges (+)		1,145	5,916	1,635
Change in operating assets and liabilities		( 19,058)	( 5,651)	( 7,119)
CASH FLOW (ABSORBED)/ GENERATED BY OPERATING ACTIVITY		( 9,205)	16,958	727
Increase (-)/ decrease (+) in intangible fixed assets		( 843)	( 2,129)	2,384
Increase (-)/ decrease (+) in tangible fixed assets		( 1,206)	( 4,468)	( 938)
Investments and write-downs (-)/ Disinvestments and revaluations (+)		( 3)	( 50)	( 31)
CASH FLOW (ABSORBED)/ GENERATED BY INVESTING ACTIVITY		( 2,052)	( 6,647)	1,415
Other variations in reserves and profits carried-forward of shareholders'equity		643	547	( 233)
Dividends paid		-	-	-
Proceeds (+)/ repayment (-) of financial payments		13,500	( 5,723)	( 1,392)
Increase (-)/ decrease (+) in financial receivables		( 903)	( 51)	( 411)
Financial income (+) and financial charges (-)		( 1,145)	( 5,916)	( 1,634)
CASH FLOW (ABSORBED)/GENERATED BY FINANCING ACTIVITY		12,095	( 11,143)	( 3,670)
CLOSING BALANCE		7,530	6,692	5,996

Changes in shareholders' equity

(Values in thousands of EUR)	Share capital	Share premium reserve	Other reserves	Fair Value reserve	IAS reserve	Profits/(losses) carried forward	Reamisurement of defined benefit plans reserve	Net profit/(loss) for the Group	Translation reserve	shareholders' equity Group interest in	Minority interests in shareholders' equity	Total shareholders' equity
BALANCES AT 31 December 2013	25,371	71,240	31,765	7,901	11,459	( 14,198)	( 833)	( 3,198)	( 2,733)	126,774	16,644	143,418
Allocation of 2013 profit / (loss)	-	-	-	-	-	( 3,198)	-	3,198	-	-	-	-
Dividends paid	-	-	-	-	-	-	-	-	-	-	-	-
Treasury stock (buy-back)/ sale	-	-	-	-	-	-	-	-	-	-	-	-
Total comprehensive income / (loss) of 1Q 2014	-	-	-	-	-	-	-	3,234	( 233)	3,001	309	3,310
Other changes	-	-	-	-	-	-	-	-	-	-	-	-
BALANCES AT 31 March 2014	25,371	71,240	31,765	7,901	11,459	( 17,396)	( 833)	3,234	( 2,966)	129,775	16,953	146,728
(Values in thousands of EUR)	Share capital	Share premium reserve	Other reserves	Fair Value reserve	IAS reserve	Profits/(losses) carried forward	Reamisurement of defined benefit plans reserve	Net profit/(loss) for the Group	Translation reserve	shareholders' equity Group interest in	Minority interests in shareholders' equity	Total shareholders' equity
BALANCES AT 31 December 2014	25,371	71,240	26,481	7,901	11,459		( 12,112) ( 1,229)	2,742	( 1,796)	130,057	17,915	147,972
Allocation of 2014 profit / (loss)	-	-	-	-	-	2,742	-	( 2,742)	-	-	-	-
Dividends paid	-	-	-	-	-	-	-	-	-	-	-	-
Treasury stock (buy-back)/ sale	-	-	-	-	-	-	-	-	-	-	-	-
Total comprehensive income / (loss) of 1Q 2015	-	-	-	-	-	-	-	4,566	643	5,209	637	5,846
Other changes	-	-	-	-	-	-	-	-	-	-	-	-

Interim management report

In the first quarter of 2015, consolidated revenues amount to EUR 71,224 thousand compared to EUR 67,639 thousand in the first quarter 2014, with a 5.3% increase at current exchange rates and a 3.5% increase at constant exchange rates.

In the first quarter of 2015 consolidated EBITDA amounts to EUR 12,539 thousand (with an incidence of 17.6% of consolidated sales), compared to EUR 10,718 thousand in the first quarter 2014 (15.8% of consolidated sales). The improvement in profitability is mainly driven by the sales growth and it involved especially the footwear and leather goods division.

At 31 March2015 operating net working capital amounts to EUR 86,448 thousand (33.9% of LTM sales) compared to EUR 72,242 thousand at 31 March 2014 (29.4% of sales). The increase in the percentage on sales is mainly related to the increase in trade receivables and to the increase in inventories driven by the growth of the sales of the period and of orders' backlog for the Autumn/Winter 2015 collections compared to the corresponding seasons of 2014.

Net financial indebtedness increases of EUR 11,853 thousand from EUR 83,567 thousand at 31 December 2014 to EUR 95,420 thousand at 31 March 2015, mainly for the increase in net working capital and for the cash in of approximately EUR 6 millions for the sale of Alberta Ferretti's store in Paris recorded last year.

Explanatory notes

Income statement

1. Revenues from sales and services

First quarter 2015 vs 2014

In the first quarter of 2015, consolidated revenues amount to EUR 71,224 thousand compared to EUR 67,639 thousand in the first quarter 2014, with a 5.3% increase at current exchange rates and a 3.5% increase at constant exchange rates.

(Values in thousands of EUR)	I Q		I Q			Change
	2015	%	2014	%	∆	%
Italy	31,962	44.9%	28,880	42.7%	3,082	10.7%
Europe (Italy and Russia excluded)	16,492	23.2%	16,947	25.1%	( 455)	(2.7%)
Russia	2,413	3.4%	5,125	7.6%	( 2,712)	(52.9%)
United States	5,195	7.3%	3,504	5.2%	1,691	48.4%
Japan	1,822	2.6%	1,461	2.2%	361	24.7%
Rest of the World	13,340	18.6%	11,722	17.2%	1,618	13.8%
Total	71,224	100.0%	67,639	100.0%	3,585	5.3%

The following table details the revenues by geographical area for the first quarters of 2015 and 2014.

In the first quarter of 2015, in Italy the Group records sales for EUR 31,962 thousand corresponding to 44.9% of consolidated sales, registering a very positive trend and a growth of 10.7%.

Sales in Europe decrease by 2.7% (-3.6% at constant exchange rates), contributing to 23.2% of consolidated sales, while the Russian market, representing 3.4% of consolidated sales, declined by 52.9% (the decrease remains unchanged at constant exchange rates) to EUR 2,413 thousand solely due to current difficulties of the domestic economic situation.

Sales in the United States are equal to EUR 5,195 thousand, contributing to 7.3% of consolidated sales, with an increase of 48.4% (+24.7% at constant exchange rates). Also in Japan sales increase by 24.7% (+24.7% at constant exchange rates) registering a significant growth, corresponding to EUR 1,822 thousand and to 2.6% of consolidated sales.

In the Rest of the World, sales are equal to EUR 13,340 thousand with an increase of 13.8% (+11.9% at constant exchange rates) and a contribution of 18.6% of consolidated sales, especially thanks to the excellent performance in Greater China, which posted a 68% growth.

The following table details the revenues by brand for the first quarters of 2015 and 2014.

(Values in thousands of EUR)	I Q		I Q			Change
	2015	%	2014	%	∆	%
Alberta Ferretti	7,925	11.1%	6,958	10.3%	967	13.9%
Philosophy	3,727	5.2%	6,026	8.9%	( 2,299)	(38.1%)
Moschino	45,941	64.5%	39,015	57.7%	6,926	17.8%
Pollini	7,743	10.9%	8,252	12.2%	( 509)	(6.2%)
Other	5,888	8.3%	7,388	10.9%	( 1,500)	(20.3%)
Total	71,224	100.0%	67,639	100.0%	3,585	5.3%

In the first quarter of 2015, Alberta Ferretti brand increases by 13.9% (+11.9% at constant exchange rates), generating 11.1% of consolidated sales, while Philosophy brand decrease by 38.1% (-39.1% at constant exchange rates), generating 5.2% of consolidated sales.

In the same period, Moschino brand sales increase by 17.8% (+15.9% at constant exchange rates) contributing to 64.5% of consolidated sales.

Pollini brand decreases by 6.2% (-6.8% at constant exchange rates), generating 10.9% of consolidated sales, while the other brands sales decrease by 20.3% (-23.9% at constant exchange rates) contributing to 8.3% of consolidated sales.

The following table details the revenues by distribution channel for the first quarters of 2015 and 2014.

(Values in thousands of EUR)	I Q		I Q			Change
	2015	%	2014	%	∆	%
Wholesale	47,388	66.5%	45,144	66.7%	2,244	5.0%
Retail	20,389	28.6%	18,923	28.0%	1,466	7.7%
Royalties	3,447	4.9%	3,572	5.3%	( 125)	(3.5%)
Total	71,224	100.0%	67,639	100.0%	3,585	5.3%

By distribution channel in the first quarter of 2015, wholesale sales increase by 5.0% (+3.3% at constant exchange rates) contributing to 66.5% of consolidated sales.

Sales of our directly-operated stores (retail channel) amount to EUR 20,389 thousand with an increase of 7.7% (+5.5% at constant exchange rates) contributing to 28.6% of consolidated sales.

Royalty income is 3.5% lower than in the corresponding period of the previous year, representing 4.9% of consolidated sales.

2. Gross Operating Margin (EBITDA)

First quarter 2015 vs 2014

In the first quarter of 2015 consolidated EBITDA amounts to EUR 12,539 thousand (with an incidence of 17.6% of consolidated sales), compared to EUR 10,718 thousand in the first quarter 2014 (15.8% of consolidated sales). The improvement in profitability is mainly driven by the sales growth and it involved especially the footwear and leather goods division.

EBITDA of the prêt-à-porter division amounts to EUR 8,426 thousand, showing a 12.2% decrease compared to EUR 9,595 thousand in the first quarter 2014 and a 15.3% incidence on sales; the decrease is mainly due to the discounts granted to Russian customers to support the difficult economic situation of the country.

EBITDA of the footwear and leather goods division is positive for EUR 4,113 thousand (representing 16.8% of sales), showing a 266.2% increase compared to EUR 1,123 thousand in the first quarter 2014 (representing 5.7% of sales), with a EUR 2,990 thousand increase, attributable to the excellent sales growth.

Consolidated Ebit is positive for EUR 9,412 thousand, compared to EUR 7,747 thousand in the first quarter 2014, showing a EUR 1,665 thousand improvement (+21.5%).

3. Net profit for the Group

First quarter 2015 vs 2014

In the first quarter 2015 the Group has posted a net profit of EUR 4,566 thousand compared to a net profit of EUR 3,234 thousand in the first quarter 2014 with a EUR 1,332 thousand improvement (+41.2%), thanks to the improvement in operating profit and to the decrease in financial expenses.

Segment information

Economic performance by Divisions

At international level, the Group is divided into two main business sectors:

• (i) Prêt-à porter Division;
• (ii) Footwear and leather goods Division.

First quarter 2015 vs 2014

The following tables indicate the main economic data for the first quarter of 2015 and 2014 of the Prêt-à porter and Footwear and leather goods Divisions.

(Values in thousands of EUR)	Prêt-à porter Division Footwear and leather		Elimination of	Total
I Q 2015		goods Division	intercompany transactions
SECTOR REVENUES	55,224	24,548	( 8,548)	71,224
Intercompany revenues	( 1,964)	( 6,584)	8,548	-
Revenues with third parties	53,260	17,964	-	71,224
Gross operating margin (EBITDA)	8,426	4,113	-	12,539
Amortisation	( 2,381)	( 692)	-	( 3,073)
Other non monetary items:
Write-downs	-	( 54)	-	( 54)
Net operating profit / loss (EBIT)	6,045	3,367	-	9,412
Financial income	183	22	( 135)	70
Financial expenses	( 1,009)	( 341)	135	( 1,215)
Profit / loss before taxes	5,219	3,048	-	8,267
Income taxes	( 2,104)	( 960)	-	( 3,064)
Net profit / loss	3,115	2,088	-	5,203

(Values in thousands of EUR)	Prêt-à porter Division Footwear and leather		Elimination of	Total
		goods Division	intercompany
I Q 2014			transactions
SECTOR REVENUES	52,718	19,845	( 4,924)	67,639
Intercompany revenues	( 1,634)	( 3,290)	4,924	-
Revenues with third parties	51,084	16,555	-	67,639
Gross operating margin (EBITDA)	9,595	1,123	-	10,718
Amortisation	( 2,235)	( 704)	-	( 2,939)
Other non monetary items:
Write-downs	-	( 32)	-	( 32)
Net operating profit / loss (EBIT)	7,360	387	-	7,747
Financial income	244	4	( 184)	64
Financial expenses	( 1,454)	( 428)	184	( 1,698)
Profit / loss before taxes	6,150	( 37)	-	6,113
Income taxes	( 2,490)	( 80)	-	( 2,570)
Net profit / loss	3,660	( 117)	-	3,543

Prêt-à porter Division

In the first three months of 2015, revenues of the prêt-à-porter division increase by 4.8% (+2.5% at constant exchange rates) to EUR 55,224 thousand. This division contributes to 72,7% of consolidated revenues in the first quarter of 2014 and 69.2% in the first quarter of 2015, before inter-divisional eliminations.

EBITDA of the prêt-à-porter division is EUR 8,426 thousand in the first quarter of 2015 with a decrease of 12.2% compared to EUR 9,595 thousand in the first quarter of 2014 and a 15.3% margin on sales; decrease is mainly due to the discounts granted to Russian customers to support the difficult economic situation of the country.

Footwear and leather goods Division

Revenues of the footwear and leather goods division increase by 23.7% from EUR 19,845 thousand in the first quarter of 2014 to EUR 24,548 thousand in the first quarter of 2015.

EBITDA of the footwear and leather goods division is positive for EUR 4,113 thousand (representing 16.8% of sales), showing a 266.2% increase compared to EUR 1,123 thousand in the first quarter 2014 (representing 5.7% of sales), with a EUR 2,990 thousand increase, attributable to the excellent sales growth.

Balance sheet

4. Net working capital

At 31 March 2015 operating net working capital amounts to EUR 86,448 thousand (33.9% of LTM sales) compared to EUR 72,242 thousand at 31 March 2014 (29.4% of sales).

The increase in the percentage on sales is mainly related to the increase in trade receivables and to the increase in inventories driven by the growth of the sales of the period and of orders' backlog for the Autumn/Winter 2015 collections compared to the corresponding seasons of 2014.

5. Fixed assets

The change in fixed assets, that decrease from EUR 196,479 thousand at 31 December 2014 to EUR 195,552 thousand at 31 March 2015, is determined by the investments related to the maintenance and stores' refurbishment and by the amortisation of the period.

6. Shareholders' equity

The balance sheet shows a shareholder's equity that changes from EUR 147,972 thousand at 31 December 2014 to EUR 154,577 thousand at 31 March 2015.

Changes in shareholders' equity are presented in tables at page 13.

7. Net financial position

Net financial indebtedness increases of EUR 11,853 thousand from EUR 83,567 thousand at 31 December 2014 to EUR 95,420 thousand at 31 March 2015, mainly for the increase in net working capital and for the cash in of approximately EUR 6 millions for the sale of Alberta Ferretti's store in Paris recorded last year.

Other information

Earnings per share

Basic earnings per share:

(Values in thousands of EUR)	31 March	31 March
	2015	2014
Consolidated earnings/(losses) for the period for the shareholders of the Parent
Company	4,566	3,234
Weighted average number of oustabding shares	101,486	101,486
Basic earnings per share	0.045	0.032

Measurement basis

The main accounting policies and measurement basis adopted in preparing the consolidated financial statements at 31 March 2015 are the same used in preparing the consolidated financial statements at 31 December 2014.

Significant events subsequent the balance sheet date

After the 31 March 2015 no significant events regarding the Group's activities have to be reported.

Outlook

The path of growth in sales and profitability in the first quarter of 2015 confirms the positive outlook for the current year, supported by a 7% increase in the orders backlog for the next Autumn/Winter collections. Among the significant results achieved, we highlight the strengthening of the visibility and positioning of the Group's brands, the progression of the accessories business and the development of the international presence, except for the difficult Russian context.

Atypical and/or unusual transactions

Pursuant to Consob communication n. DEM/6064293 dated 28 July 2006, it is confirmed that during the first quarter of 2015, the Group did not enter into any atypical and/or unusual transactions, as defined in that communication.

Significant non-recurring events and transactions

During the first quarter of 2015 no significant non-recurring events and transaction have been realized.

The executive responsible for preparing the company's accounting documentation Marcello Tassinari declares, pursuant to paragraph 2 of art. 154b of the Consolidated Finance Law, that the accounting information contained in this document agrees with the underlying documentation, records and accounting entries.