Aeffe S.p.A. stands as a significant entity in the international luxury goods and fashion industry, boasting a history that spans over three decades. Listed on the Borsa Italiana Star segment, the company is recognized for its substantial impact on the fashion world. The genesis of the Aeffe Group can be traced back to designer Alberta Ferretti's initiative, who established her own business in 1972. This marked the start of high-class production, leading to the Alberta Ferretti brand becoming synonymous with ""Made in Italy"" elegance and quality.
The Founding and Early Years
Alberta Ferretti, born on May 2, 1950, is an Italian fashion designer and dressmaker. She co-founded Aeffe S.p.A. with her brother Massimo in 1976, with the company based in San Giovanni in Marignano. Before establishing Aeffe, Alberta Ferretti opened her first boutique, named Jolly, in Cattolica in 1968. She designed her first collection in 1973 and began showcasing seasonal collections on the runways of Milan in 1981.
Expansion and Brand Acquisitions
In 1981, Alberta Ferretti officially launched her eponymous label, characterized by feminine, fluid, and delicate silhouettes. Two years later, Alberta Ferretti signed a licensing agreement with Moschino for manufacturing and distribution. The initial core of the company was founded in 1975 and named after the famous designer. In 1985, the first Alberta Ferretti boutique opened in Milan, and the Philosophy line made its debut. From 1994, Ferretti extended her company's reach outside of Italy, starting with the acquisition of a building at 30 West 56th Street in New York City. Aeffe took control of Pollini in late 2000 and introduced an apparel line in 2003.
Aeffe has expanded its portfolio through strategic acquisitions and licensing agreements. In 1994, Aeffe signed a production and distribution agreement for Jean-Paul Gaultier’s ready-to-wear lines, followed by an exclusive license agreement for the production and distribution of American designer Narciso Rodriguez’s ready-to-wear collections. In 1999 Aeffe bought Moschino, and in 2012, also secured the licence for Emanuel Ungaro.
Brand Portfolio
Aeffe S.p.A. controls several prominent brands, each with its unique identity and market positioning. These include:
- Alberta Ferretti: Founded in 1981, the Alberta Ferretti brand is known for its feminine, fluid, and delicate silhouettes. Alberta Ferretti has carved a very specific image, catering to a feminine customer who at the same time is independent and confident, a working woman who needs to feel at ease and comfortable in her skin. Ferretti is known for her designs featuring twisting, tucking, and draping techniques and has been dubbed the queen of chiffon, for her talent in creating romantic, dreamy evening gowns and slipdresses in that material. In September 2024, Ferretti announced her retirement from creative directing her namesake label after 41 years.
- Moschino: Aeffe bought Moschino in 1999, which became the group's largest brand.
- Philosophy di Lorenzo Serafini: Originally launched as Ferretti Jeans Philosophy in 1989 and renamed Philosophy di Alberta Ferretti in 1994, this line is now known as Philosophy di Lorenzo Serafini. In October 2012, Alberta Ferretti passed the baton to Natalie Ratabesi as creative director of the younger Philosophy di Alberta Ferretti line. Lorenzo Serafini has been leading the Philosophy brand since 2014, employing featherweight jersey, frothy lace, and other airy fabrics for a very feminine and romantic collection for spring, very much in sync with Ferretti’s signature brand.
- Pollini: Aeffe took control of Pollini in late 2000 and introduced an apparel line in 2003.
Distribution and Market Presence
Aeffe operates on an international scale, engaging in the creation, production, and distribution of a wide array of products, including prêt-à-porter, footwear, leather goods, lingerie, and beachwear. The group's business model focuses on the constant pursuit of uniqueness and exclusivity, developing, producing, and distributing its collections under proprietary brands.
Aeffe's distribution channels are diverse, encompassing wholesale and retail avenues. The wholesale channel includes agents and importers, directly operated showrooms, mono-brand franchised boutiques, corners, shop-in-shops, multi-brand boutiques, department stores, and e-retailers. By 1998 Ferretti opened in-store boutiques for selling her signature and Philosophy di Alberta Ferretti lines at Bergdorf Goodman. Next she obtained her initial American freestanding store in SoHo. This business, near Prince Street, is exclusively for her Philosophy collection, the lower priced edition of Ferretti's signature line intended for younger women. In contrast to most designers, she started boutiques for her secondary lines prior to opening a flagship store for her signature collection. Ferretti's West Broadway building is located next door to a Rizzoli bookstore and is a Federal style architecture townhouse built in the late 19th century.
Financial Operations
Aeffe has agreed to transfer ownership of its beauty products, perfumes and cosmetics to Euroitalia. To this end, the manufacturer and long-time licensee has paid the Italian fashion group the sum of 98 million euros ($110 million). Aeffe SpA has sold all its Moschino products in class 3, according to the Nice Treaty nomenclature. Of the 98 million euro transaction, 39.6 million have already been paid, with the balance due on November 29. In a note, Aeffe SpA indicated that the transaction would inject cash which will be used to significantly reduce the group’s net financial debt.
Challenges and Recent Developments
Aeffe S.p.A. has faced significant challenges, including decreased consumer demand and increased operational and production costs, adding financial strain. Intensified competition in key markets such as the US and Europe has posed substantial hurdles, making it difficult for Aeffe S.p.A. to retain market share and attract new customers.
Moschino, the group's largest brand, faced a revenue decline of 16.3%, significantly impacting overall financial performance. Regional performance showed the most significant decline in the US, with a 25.6% decrease, significantly affecting overall sales. Europe and Italy also faced notable revenue drops, with declines of 16.2% and 15.5%, respectively.
Market sources believe more changes could be in the pipeline for Ferretti’s parent company, Aeffe. Executive chairman and Alberta’s brother Massimo Ferretti is said to be seeking a financial investor. Last summer, the siblings split their personal properties and shares in the company, a total of almost 62 percent, channeling them into their own respective holdings.
Alberta Ferretti's Legacy
Alberta Ferretti founded her eponymous label in 1981. Throughout her longstanding career, Ferretti has played a significant role in promoting Italian culture and business and has been awarded several accolades in recognition of her work, such as the Cavalieri del Lavoro by the Italian president in 1998 and a Lifetime Achievement Award in Rome in 2005. In October 1993 Ferretti presented clothes reminiscent of The Great Gatsby for the Milan ready-to-wear shows. One of her designs was a long and trim gingham dress, in pale blue. A flapper showed a beige crocheted dress styled just above the knee. Her renditions of the toga for the production were diverse. Ferretti is known for her designs featuring twisting, tucking, and draping techniques. Her style employs a subtle layered look, sometimes showing a hint of hand-beaded gauze which extends slightly beneath the hem of a wool dress. The erotic qualities of the chiffon and jersey fashions she introduced for her spring 2008 fashion collection is evident in the look of her dresses. Many of them are cut high in the front and draped low in the back. Her target customer is the cocktail crowd.