Aeffe

Earnings Release • Feb 6, 2018

Informazione Regolamentata n. 0923-4-2018		Data/Ora Ricezione 06 Febbraio 2018 14:51:33	MTA - Star
Societa'	:	AEFFE
Identificativo Informazione Regolamentata	:	98813
Nome utilizzatore	:	AEFFEN02 - Degano
Tipologia	:	REGEM
Data/Ora Ricezione	:	06 Febbraio 2018 14:51:33
Data/Ora Inizio Diffusione presunta	:	06 Febbraio 2018 14:51:34
Oggetto	:	FY 17 Revenues Press Release
Testo del comunicato

Vedi allegato.

PRESS RELEASE

AEFFE: In 2017 Sales at Euro 313 Million Up By 12% At Constant Exchange Rates

Compared To 2016

San Giovanni in Marignano, 6 February 2018 - The Board of Directors of Aeffe SpA has approved today the Group's preliminary sales figures for the Full Year 2017. The company, listed on the STAR segment of Borsa Italiana, operates in the luxury sector, with a presence in the prêt-à-porter, footwear and leather goods division under renowned brand names such as Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino, Pollini, Jeremy Scott and Cédric Charlier.

• Consolidated revenues of €313m, compared to €281m in 2016, with a 12% increase at constant exchange rates (+11% at current exchange rates)
• Significant growth at constant exchange rates in Italy (+21%), in Europe (+14%) and in Greater China (+17%)
• Sales increase in all distribution channels at constant exchange rates: wholesale +9%, retail +19%, royalties +11%

Consolidated Revenues

In the year 2017 Aeffe Group registered sales of Euro 312.6 million compared to €280.7m in 2016, with a 11.6% increase at constant exchange rates (+11.4% at current exchange rates).

Revenues of the prêt-à-porter division amounted to €239.8m, up by 11.4% at constant exchange rates compared to 2016 (+11.1% at current exchange rates).

Revenues of the footwear and leather goods division increased by 12.8% to €108.2m both at constant and current exchange rates, before interdivisional eliminations.

Massimo Ferretti, Executive Chairman of Aeffe Spa, has commented: "The trend of 2017 reflects the strategy of constant attention to quality and to enhancement of our brands' international positioning. Therefore we are very satisfied with the results achieved in terms of revenues, with double digit growth of all the Group's proprietary brands. The year ended positively for both distribution channels, wholesale up by 9% and retail up by 19%, and in the main markets, especially in Italy (+21%), Europe (+14%) and in Greater China (+17%). In light of +15% for our S/S 2018 sales campaign and the positive trend for the A/W 2018 Pre-collections, we look to the future with renewed optimism".

Revenues Breakdown by Region

(In thousands of Euro)	FY 17 Reported	FY 16 Reported	% Change	% Change*
Italy	152,116	126,079	20.7%	20.7%
Europe (Italy and Russia excluded)	67,759	59,934	13.1%	13.6%
Russia	9,105	9,107	0.0%	0.0%
United States	18,605	22,941	(18.9%)	(17.5%)
Rest of the World	65,019	62,630	3.8%	3.7%
Total	312,605	280,691	11.4%	11.6%

(*) Calculated at constant exchange rates

In 2017, sales in Italy, amounting to 48.7% of consolidated sales, registered a very positive increase marking a 20.7% growth to €152.1m compared to 2016, thanks to organic growth both in wholesale and in the retail channel, which both benefited from local customers and high-end tourist flows.

At constant exchange rates, sales in Europe, contributing to 21.7% of consolidated sales, increased by 13.6%, driven especially by the good performance in UK, Germany and France. Sales data were positive both for the directly operated stores channel and for the wholesale channel.

The Russian market, representing 2.9% of consolidated sales, reported a constant trend compared to last year, showing good signs of recovery in the last quarter of the year.

Sales in the United States, contributing to 6% of consolidated sales, posted in the period a decrease of 17.5% at constant exchange rates. This change was mainly due to the slowdown in sales in the department stores.

In the Rest of the World, the Group's sales totalled €65.0m, amounting to 20.8% of consolidated sales, recording an increase of 3.7% at constant exchange rates compared to 2016, especially driven by excellent trend in Greater China, which posted a 16.5% growth.

(In thousands of Euro)	FY 17	FY 16	%	%
	Reported	Reported	Change	Change*
Wholesale	219,173	201,271	8.9%	9.0%
Retail	83,310	70,334	18.4%	18.9%
Royalties	10,122	9,086	11.4%	11.4%
Total	312,605	280,691	11.4%	11.6%

Revenues by distribution channel

(*) Calculated at constant exchange rates

By distribution channel, in 2017, wholesale sales grew by 9.0% at constant exchange rates (+8.9% at current exchange rates), contributing to 70.1% of consolidated sales.

The sales of our directly-operated stores (DOS), representing 26.7% of consolidated sales, showed a solid progression posting an 18.9% increase at constant exchange rates (+18.4% at current exchange rates), compared with 2016.

Royalty incomes, representing 3.2% of consolidated sales, recorded an 11.4% increase compared to 2016.

Please note that the data related to Full Year 2017 sales included in this press release are preliminary and unaudited by the Auditors' company.

Please note that the AEFFE FY 2017 Consolidated Revenues Presentation is available at the following link: http://www.aeffe.com/aeffeHome.php?lang=ita, as well as on the authorized storage site .

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

Contacts: Investor Relations AEFFE S.p.A Annalisa Aldrovandi +39 0541 965494 annalisa.aldrovandi@aeffe.com www.aeffe.com

Press Relations Barabino & Partners Marina Riva m.riva@barabino.it +39 02 72023535