Luxury fashion group reeling after disastrous quarter | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The luxury market faces a moment of reckoning.

After years of booming sales and surging global demand, the industry is showing signs of fatigue — especially among labels once seen as unstoppable.

Consumer appetite for high-end goods is cooling across nearly every region, and even legacy names aren’t immune.

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One longtime Italian fashion powerhouse just reported a brutal quarter that may signal deeper trouble ahead.

Moschino’s parent company just had a rough quarter.

Image source&colon; Gustavsson/Washington Post via Getty Images

Aeffe reveals troubling Q1 results amid market pressure

Aeffe SpA ( (AEFSF) ) — the parent company of Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini, and Pollini — posted a 23.2% revenue decline in Q1 2025, falling to €61.7 million (about $68.6 million).

Its ready-to-wear division dropped nearly 30% to €38.7 million ($43 million), and footwear and leather goods fell 18% to €27.1 million ($30.1 million).

Net losses rose to €10.1 million ($11.2 million), nearly double the loss from the same time last year. EBITDA also flipped from a €6.3 million gain ($7 million) to a €1.5 million loss ($1.7 million).

The downturn hit nearly every market. Italy saw sales plunge 25%, Europe dropped 21%, Asia and other regions were down 24%, and U.S. revenue slid 18%. Wholesale, which made up 70% of the company’s turnover, fell 23%, while retail sales declined 19%.

Executive chairman Massimo Ferretti blamed “the general global slowdown in consumption,” which affected both wholesale and retail channels.

While he said the situation “has not caught us unprepared,” the financials tell a story of mounting pressure.

Aeffe looks to leadership changes and cost strategy for recovery

To chart a path forward, Aeffe will focus on leadership shifts and strategic cost control.

Adrian Appiolaza stepped into the role of creative director at Moschino in early 2024 after the sudden passing of Davide Renne. Not long after, Alberta Ferretti announced her exit from the brand she built over four decades, with veteran collaborator Lorenzo Serafini taking the reins.

The company also made a bold financial move last year, selling off Moschino’s cosmetics and fragrance division for €98 million ($109 million). That sale delivered a short-term boost, but with those gains behind it, Aeffe now faces the harder work of rebuilding its core fashion business.

Ferretti is optimistic: “We look with positivity and renewed confidence to a recovery of the retail market in the upcoming months.”

Still, optimism alone won’t be enough. For investors and customers alike, the real question is whether that confidence can translate into a turnaround — or Aeffe’s struggles are just getting started.