As was announced in January, when preliminary data for fiscal 2024 was published, Italian fashion group Aeffe (owner of Alberta Ferretti, Philosophy by Lorenzo Serafini, Moschino and Pollini) generated a revenue of €251 million in fiscal 2024, down 21.2% at constant exchange rates compared to the previous year.
aeffe.com
The good news is that Aeffe is back in the black, having recorded an operating profit of €19.3 million, as opposed to the €32.1 million loss posted in 2023. Other profitability indicators also improved markedly in 2024. EBITDA was €84.7 million (as opposed to €5.8 million the previous year) and EBIT was €48.5 million, compared to a loss of €27.1 million in 2023.
“While we await with confidence for the international markets to bounce back, our group is working with a clear, well-defined strategic vision to reap the benefits of the company’s reorganisation process and of our brands’ repositioning, which I am convinced will be extremely rewarding for us,” said Massimo Ferretti, Aeffe’s executive president, in a press release. “The fashion week that recently ended [in Milan] gave us a great injection of optimism, as the collections by our brands Alberta Ferretti, Moschino and Pollini were received with much enthusiasm. We hope that the current geopolitical instability will be followed by a phase of renewed equilibrium and growth, which I believe will give a significant boost to the fashion and luxury sector, a strategic and central asset for [Italy’s] economy,” he added.
Product category-wise, Aeffe’s ready-to-wear division reported a revenue of €166.1 million, equivalent to a 21.8% decrease at current exchange rates compared to 2023. Footwear and leather goods generated a revenue of €106.2 million, equivalent to a 25.3% downturn.
Revenue in Italy (which accounted for 42.4% of the total) fell by 20.6% to €106.4 million. Revenue in the rest of Europe was €76.5 million (down 22.4%), while revenue in Asia and the rest of the world fell by 20.8%, and revenue in the Americas by 20.2%.
The group’s wholesale revenue (accounting for 63.8% of the total) fell by 25.1% to €160.2 million, while direct retail recorded a smaller downturn, dropping 12.5% to €82.7 million.
Michael Kors announced on Tuesday the launch of its Amazon storefront, expanding its digital retail presence in the U.S.
Michael Kors launches Amazon storefront. – Michael Kors
The move marks the first time that Michael Kors handbags, ready-to-wear, and accessories will be available directly from the brand through Amazon.
The new storefront immerses shoppers in the brand’s signature jet-set lifestyle, through campaign videos and imagery that transport fans to exotic destinations. An ‘About Us’ page highlights the brand’s history, while behind-the-scenes content and notes from designer Michael Kors add an exclusive touch to the shopping experience.
The Michael Kors Amazon store features dedicated sections for women’s ready-to-wear, handbags, men’s clothing and accessories, footwear, sunglasses, and watches.
To celebrate the launch, designer Michael Kors and actor-musician Suki Waterhouse, who stars in the brand’s newly released Spring 2025 campaign, will host a private dinner for influencers and press at Aman New York.
Michael Kors equally operates digital flagships across North America, Europe and Asia, offering customers a seamless omni-channel experience.
If you can’t beat them join them. That’s the strategy behind saving the Forever 21 name as the last remaining stores are shuttered and the brand pursues a model that is similar to its online competitors.
Forever 21
US Bankruptcy Judge Mary Walrath gave the company temporary permission on Tuesday to start going-out-of business sales at all of its 354 stores while managers try to find a last-second rescuer for part of the 41-year-old clothing chain.
Forever 21 has “had advanced discussions with third parties” about rescuing part of the chain, company attorney Andrew L. Magaziner said during the court hearing. The situation “remains fluid.”
Since the 1980s, Forever 21 stores have attracted droves of young women by selling low-cost, trendy clothing. But the company was undone by the rising cost of inventory and wages and competition from online retailers, like Temu and Shein that can skirt import duties and tariffs by shipping goods directly to consumers, the company said in court papers.
It’s the company’s second bankruptcy and the latest brick-and-mortar store to fold in a wave of closures over the past decade or so. The pace of failures picked up during the pandemic as malls closed, and buyers turned to online sellers during lockdown.
Should it fail to find a partner to rescue some of its stores, Forever 21 would rely on shipping goods directly from overseas factories to consumers and to other retail outlets, according to a person familiar with the company’s plans. Authentic Brands Group LLC, the apparel and lifestyle label empire which owns the Forever 21 name and other intellectual property, has successfully tested the factory-to-retailer model outside the US, the person said.
Last year just 11% of Forever 21’s sales were online, according to court papers. The company also plans to sell Forever 21 apparel in partner stores, including in JCPenney where such an arrangement is already underway.
Currently, Forever 21 uses a traditional structure in which designers and other vendors in the US acquire merchandise from overseas factories, mainly in China, Korea and Hong Kong, according to court records. That material is then sent to Forever 21 stores and warehouses, which requires the company to pay duties and tariffs, the records show.
Authentic Brands will continue to own the IP and may license the brand to other operators, according to a statement Sunday. Forever 21’s locations outside of the US are operated by other licensees and aren’t included in the bankruptcy.
The company plans to finish shutting its stores by the end of April, Magaziner said in court on Tuesday. If a buyer appears for some of the stores, the company would adjust its strategy, he told Walrath.
A joint venture of Hilco, Gordon Brothers Retail Partners LLC, and SB360 Capital Partners is working on the liquidation.
The court also approved a request to use secured lenders’ cash to fund the bankruptcy cases and payrolls. The company entered the Chapter 11 with about $47.2 million bank cash, according to a budget disclosed in the court papers.
It’s the clothing brand’s second stint with bankruptcy. Its first in 2019 was rife with fighting, left creditors little recovery and resulted in the closing of hundreds of locations it had during its heyday.
A group of buyers — including Simon Property Group Inc., Brookfield Corp. and Authentic Brands — teamed up to buy Forever 21 out of bankruptcy through a venture called Sparc Group. That group partnered with Shein in 2023 as Forever 21 attempted to solve some of its operational issues.
A few months ago, US retail group JCPenney acquired Sparc, forming Catalyst Brands. The deal saw its previous shareholders maintain minority stakes in the company. At the time of the merger, Catalyst said it was exploring strategic options for the operations of Forever 21.
Russian diamond producer Alrosa announced on Tuesday that it had decided to temporarily suspend operations at its less profitable deposits.
Reuters
The suspension will affect deposits with an annual production of less than 1 million carats, it said. The company said it still planned to produce 29 million carats of diamonds in 2025.
In November 2024, Alrosa said that it might suspend some production in 2025 and reduce staff.
Entertainment8 years ago