MILAN — Aeffe executive chairman Massimo Ferretti is taking action as the global slowdown in the luxury industry dragged down the revenues and profitability of the fashion group in the first half.

For starters, Ferretti said former Ferragamo chief executive officer Marco Gobbetti was named to the board on Friday to help develop growth strategies and strengthen the group, “including, where opportunities arise, through strategic partnerships.” He also mapped out measures to cut costs and to improve organizational efficiency “with a focus on the provision of services,” beginning in the first half and throughout a 2026-2028 plan.

The appointment and the first-half performance did not impress investors, who sent shares down 3.8 percent by mid-afternoon at 44 euros.

“It is now clear to everyone that we are experiencing a serious crisis in the fashion and luxury sector, which is having a significant impact on our group’s performance,” said Ferretti in a statement commenting on Aeffe’s first-half financial results. “Persistent political instability, exacerbated by a series of ongoing conflicts, is having a heavy impact on the global economy. 2025 will still be a year of transition for the group as it works toward its desired recovery in sales volumes and performance, especially for the Moschino brand, given the difficulties that continue to plague the market.”

Group revenues fell 27.8 percent to 100 million euros in the six months ended June 30 compared with 138.6 million euros in the same period in 2024.

Aeffe is launching “a major cost rationalization project that will take full effect in 2026, including the reduction of fixed costs, direct costs and labor costs,” as it expects a further slowdown in sales.

“Aeffe directors continue to closely monitor the performance and evolution of the reference markets, the implementation of the cost rationalization plan, and all initiatives that could further protect cash flows and expected economic margins.”

Ferretti further elaborated on the future steps, saying that Aeffe is preparing a 2026-2028 business plan “which will contain the Group’s new strategic guidelines in terms of sales channels and markets, as well as critically reviewing some of the company’s most important processes, including operations and physical channels.”

To support the plan, Aeffe continues to invest in the management team, hence the arrival of Gobbetti.

In the first half, sales of the ready-to-wear division amounted to 64.9 million euros, a decrease of 31 percent, while revenues of the footwear and leather goods division totaled 45.9 million euros, down 18.7 percent.

Net losses amounted to 28.5 million euros and compared with a net loss of 20.4 million euros a year eariler.

Adjusted losses before interest, taxes, depreciation and amortization totaled 6.9 million euros compared with EBITDA of 400,000 euros in the same period last year.

Operating losses widened to 25.4 million euros from 15.8 million euros a year earlier.

Revenues in Italy were down 31.3 percent to 39.6 million euros, impacted by a 36 percent decrease of the wholesale channel. Retail was down 13 percent.

Sales in Europe, which accounts for 32 percent of the total top line, decreased 24 percent to 32 million euros.

In Asia and in the Rest of the World division, the group reported revenues of 22.5 million euros, down by 28.2 percent.

Sales in America fell 21.1 percent to 6 million euros.

The wholesale channel was down 29.7 percent to  64.4 million euros, accounting for 64.4 percent of sales.

The retail channel was off 18.7 percent to 34 million euros.

As of June 30, debt stood at 95.7 million euros, net of the IFRS 16 effect compared with 135.2 million euros at the end of June last year.