Assessment #1 Masterpost

Alrighty people, listen up! We've got document links coming up!

ANNUAL REPORTS
2012 Annual Report - https://drive.google.com/open?id=0B17yZgC-qFRQWUk1S2libnlXS0U
2013 Annual Report - https://drive.google.com/open?id=0B17yZgC-qFRQN0MyaVlPYkpGemc
2014 Annual Report - https://drive.google.com/open?id=0B17yZgC-qFRQNnpXcnVycVhhamc

SPREADSHEET
Company Spreadsheet - https://drive.google.com/open?id=0B17yZgC-qFRQZmlPQWhHWnVFaUE

WORD DOCUMENT
Assessment #1 Word Document - https://drive.google.com/open?id=0B17yZgC-qFRQQ0JXcm1xald5ZTQ


I'd really love some feedback if you have the time, I'd really appreciate it.

Chapter Three – Key Concepts and Questions (KCQs)

Key Concepts

There are four general purpose financial statements: balance sheets, income statements, statements in changes of equity and cash flow statements. I never knew there was more to a company’s financials than the straight up income and end profit they have.

The balance sheet is the one statement that shows a snapshot of the business on a particular day at a particular time. It details the company’s assets, liabilities and equity on a possible two sheets – the consolidated balance sheet which includes the company’s subsidiary financials and the standard balance sheet which is just the parent company on its own.

The income statement, on the other hand, shows how the company has changed over time since the previous report. It shows the company’s revenue and expenses. To me, this seems like the most loved and common statement in company’s reports. All people, well… I, tend to care about is the bottom line, whether the company is making money or losing it and this statement shows me exactly where all the good stuff is coming from and then where they’re throwing it away. A nice healthy stream of revenue is just what anyone would like to see (especially in my own bank account, please).

The statement in changes in equity is the third financial statement. It details the change in the shareholders’ equity over the period. I personally don’t have much interest in this statement as I am not an investor and it’s not my equity being tossed around the place, so the only people who would really have a vested personal interest would be those that had a financial stake.

The fourth financial statement is the cash flow statement which shows the opening and closing cash balances for the period and the cash inflows and outflows for the period. I had always wondered (since I commenced my accounting course two weeks ago) what the importance of the cash flow statement was and the study guide finally enlightened me. The biggest breaker of a business is going bankrupt (going into liquidation) and that’s the result of running out of cash, the most important asset. At the end of the day, that’s the measure of a business’ value and if it runs out, it means the business is unsuccessful. The cash flow statement, as I now realise, helps keep track of the inflows and outflows of cash so as to monitor how the business is maintaining and enhancing its most valuable asset.

It’s not just good enough to have these financial statements just sitting there doing nothing except looking pretty confusing, you have to be able to make sense of them. One way is ratios, which analyses the relationships between different items in the financial statements. It’s just like baking a cake, where when you increase or decrease the amount of mixture you need or how many cakes you have to make, the numbers/amounts of the ingredients/items change in proportion with each other. You don’t double the number of eggs without doubling the sugar as well. It’s all about proportion and structure, you need a certain combination of ingredients, a framework of what you need, in order to successfully make the cake.

All in all, every business works on the same basic ideologies and values, trying their best to make their business profitable and successful. Through financial statements, users – be it individuals, shareholders, businesses, creditors and anyone else so inclined – can look and understand the basics of a company and what makes it tick. The annual report and its financial statements illustrate the essence of what has occurred during the time elapsed since the previous report and allows for users to interpret meaning and understanding from the information presented.

Things I Find Confusing

What I find confusing is how a company’s financials can be separated into ‘Parent’ and ‘Group’ categories. Isn’t a company a sum of the whole? Essentially a company IS each of its components, so the group is the parent in my interpretation. If a company is made up by its subsidiaries, how do you separate the subsidiaries from the company as the subsidiaries make up the company?

It states that “An item called non-controlling interests or minority interests in the equity of your firm’s balance sheet represents the equity in the subsidiary companies not owned by the parent company (and thus not owned by the equity investors in the parent company).” So does that mean that if a company does own the entire 100% of a subsidiary company, than the equity investors also in a sense own the subsidiary as well? And if so, why doesn’t the parent company just absorb the subsidiaries into itself and its own operations? It is essentially the same company now as it’s owned by them?

Things I Find Difficult to Understand/Believe

What I find difficult to believe is how in the blazes this phrase “As a guy, I am determined to do my bit to reverse this worrying statistic in the future” ended up in my study guide. Really, really? I feel like I’ve launched from a study guide into someone’s diary.

Back on a more serious note, the whole cash flow and dividends concept is a little hard to grasp. Having never encountered dividends and the share market beyond that annoying thirty second update on the news, it is a foreign topic to me. Buying shares in itself is a rather confusing process, and dividends aren’t any easier. I understand that dividends are paid to shareholders – equity investors – but how and when and why they distribute them is unclear. Isn’t giving away all of your profits a bad idea in case of misfortune? And then, not rewarding shareholders discourages investment, right?

The study guide includes the formula Dividends (d) = Operating cash flow (C) – Capital outlays (I) + Net cash flow from debt owners (F) and then goes on to change the formula in a way I don’t quite comprehend. It then goes on to say cash flow which makes up the ‘C’ variable can mean completely different things and numbers. Combining all these different aspects that don’t quite click for me, just makes for a super confusing experience.

Things I Find Boring

Sometimes I find the text again goes off on a tangent of flowery, descriptive language that doesn’t really add to the topic, it just makes it more longwinded and on occasion hard to read. It also restates the same phrase again and again, just in different words – exactly how my English teacher always told me not to write! It just makes it seem like there’s more information, but it’s just sugar-coating nothing. It makes the text drag on and on, and make it’s boring to read. Also, the repeated references to texts we’ve never read that don’t even add to the topic at hand add to the longwindedness of the text.

The whole section on ratios was rather monotonous as the text never really got to the point of ratios; the definition of what they actually are, what their purpose is and why they’re specifically relevant to accounting and decision making.

Things I Find Exciting/Surprising

I really like the comparison to introductions at parties. At just a quick introduction, you smile and say hi, but after ten minutes you’re whisked off in the excitement of dancing and music (and alcohol, if you’re so inclined) and you tend to forget all about them. But, if you get to know them better, you remember them and have the beginnings of a relationship.

I remember being invited to my friend Shane’s 12^th birthday party a few years ago (okay, more than a few). He had gone to a different school for about a year and a half and, as expected, had made new friends that I didn’t know. There were two girls, one I talked to all night and one that I didn’t. The girl I talked to was Rebecca and I could tell you a number of things about her. The other, I couldn’t even tell you her hair colour. The point is, after spending a few hours getting to know Rebecca; I knew so much more about her and built a friendship that lasted years that involved me learning things about her I never would have guessed in the beginning. Even now that I haven’t spoken to her in 12 months or so, I still remember all these things.

The same goes for financial statements; if you spend the time getting to know them, you’ll learn more about them slowly but surely, and even if you don’t go near accounting for the next ten years, you’ll still remember the main important things about them (and even some things not so important) and have a ‘relationship’ with them.

To further the analogy of financial statements being like people, they all have similarities and differences, as Martin points out when he says “But just as we each have a different face, so our faces also have some similarities.” Financial statements can also have different names, just like people have different nicknames they respond to; like Emily can be referred to as Em, Emmy, Emse, Emsey, Emsalee, etc. etc. They still refer to the same person just as different names for a specific financial statement still refers to the same thing. And just like people, you can get along with some financial statements better than others, for example; the balance sheet and I are best buddies, love hanging out with that guy, but the statement in changes in equity, he and I are best kept at a hundred paces unless you want a restraining order brought out.

Chapter One – Key Concepts and Questions (KCQs)

Key Concepts

This chapter was a nice and easy immersion into the idea of accounting. It details the history of accounting, why we use accounting

We use accounting in order to understand a business and its realities. Is it successful? Everyone knows, even if they’re not an accountant, that money – value – is what makes the world go round. You always see little kids at the shops grabbing at lollies and toys and at the same time see their parents scolding them that you can’t just take them, you have to pay for them. You very quickly understand at a young age that you can’t get something for nothing and everything has a value. Accounting just shows us how this value is calculated and created.

Another key concept is that of how businesses can be run under different types such as a sole trader (owned by one person), a partnership (owned by two or more people), a company (separate legal entity from owners and comply with the Corporations Act) and a trust (where a trustee carries on the business for the beneficiaries).

The concept of double-entry accounting has been around for centuries and even though technology has advanced, we still maintain that method because that’s the way it’s always been done and if it ain’t broke, don’t fix it. It is the process of maintaining the relationship between each aspect of a transaction. Basically, I see it as the business version of Newton’s Third Law– every action has an equal and opposite reaction.

In order to keep track of all these tricky and confusing transactions in everyday business activities, bookkeepers use two books, journals and ledgers. The journal keeps a chronological list of all the transactions that occur every day and the ledgers categorise these transactions into their relevant accounts.

The balances of the ledgers are then brought to a trial balance where the balances of debits are added and compared to the sum of the credits where they should be equal. It is a trial balance because it helps pick up errors.

Debits and credits are the two sides of a transaction. Debits are owed, and credits are entrusted.

The accounting equation of Assets – Liabilities = Equity. It illustrates the relationship of the interest of the owners. I understand it as assets are like your salary, you have to pay all your bills first and then whatever is left over is what you get to play with and enjoy (or more sensibly, stash away just in case). This equation expands to Assets + Expenses = Equity + Revenue + Liabilities.

Whew, there was a lot of material covered in this chapter, but luckily it was relatively simple and easy to understand. For me, at least.

Things I Find Confusing/Difficult to Understand

The whole concept of debits and credits has been a little difficult for me to get a handle on. I just couldn’t for the life of me figure out which one was which and where they went in a transaction. It was just a big old mess and let me tell you, it really stressed me out. If I can’t understand this basic, fundamental concept, how screwed am I for the rest of the term? It wasn’t until the textbook question about explaining debits and credits to your friend who doesn’t understand using a car driving on a street as an example. I ended up writing:

“Debits are recorded on the left-hand side and credits are recorded on the right. Debits increase assets, expenses and drawings from owners. Credits increase revenue, liabilities and investment by owners. Driving on the left-hand side, assuming you are driving away from your business, this is the flow of money out of the firm. Driving on the right-hand side are the cars heading into your business, this is the flow of money into your business.”

After this, it all of a sudden just clicked. It was like the sun had broken through the clouds and the angels appeared with their trumpets. I had figured it out! Hallelujah for that. I still get them a little messed up sometimes when I think too hard about it, but when I stop trying to overthink it all, I sort it out again.

Things I Find Boring

In reading this chapter, I found the inclusion of the incessant focus on “businesses are everywhere” rather monotonous.

“I am writing this chapter in Yeppoon, a small coastal town in Central Queensland near Rockhampton. I have just had a short walk around the area, and businesses I saw include a dentist, Icon Dental Group, and right next door The Coffee Club, a cafe with a great spot just near the beach. Nearby is Elders Real Estate, Yeppoon Car Wash, and Sullivan Nicolaides Pathology (which provides medical services). There is also David Eaddy & Co (solicitors), Johnson & Tennent (chartered accountants), CEADS (Capricorn Engineering & Drafting Services), Yeppoon Medical Centre, Betta Electrical Yeppoon (electrical retailer), Marsden Tavern (retails alcohol and provides various entertainment services), Young’s Coaches (the local bus company), Sandy’s Cafe, Subway, Rip Curl (clothing & swimwear retailer), Sleepzone (beds and bedding retailer), Woody’s Foodworks Yeppoon (supermarket), Paintplace Yeppoon (paint retailer), Yeppoon Tattoo Studio (tattoo services), Tanby Roses Florist (retails flowers and manufactures flower arrangements), Tai Ho Indian Restaurant, James Street Medical Centre and Centrelink Yeppoon (a government agency providing social welfare payments).

Other businesses I saw were Dollars and Sense (discount variety store), Sail Inn Motel (sells accommodation services), Office National Express (retails office supplies), Happy Sun Chinese Restaurant, S.M. Weston Optometrist (sells eye services and retails spectacles), Yeppoon Health & Fitness Centre (gym services), Pacific Hotel, Wavelengths (hairdresser), Megalomania (bar and bistro), Jaques Coastal Meats (butcher), Video Ezy, St Ursula’s College (a private school that sells education services), Wendy’s (ice cream/cafe), Coles (supermarket), Ian Weigh Toyota (car dealer), Regals Dental (another dentist), Blue Dolphin Caravan Park, Shell (petrol station), Seaside pools (builder of pools), Yeppoon Self Storage, Flexihire (equipment hire and sales), Wot A Sign (sign makers, printer & website designer), Central Queensland Sailmakers (retails, installs and manufactures yacht sails, shade sales, marine upholstery), Yeppoon Veterinary Surgery, Yeppoon Kitchens (manufactures and installs kitchens), Firewood2Furniture (manufactures custom built timber furniture) and Trevor’s Trim & Upholstery (retails, installs and manufactures shade sales, blinds, marine & household upholstery). I took a few photos of these businesses which are included in Figure 1-1 below.”

This whole great big chunk of text is just a waste of time and space. Just look at it. It’s now taken up a whole page of my own text. Big waste of space, isn’t it?

Everyone has walked down thousands of streets in their lives and make purchases from these types of businesses all the time. I know that there are a gazillion different businesses around me and being on the other side of the nation, I don’t particularly care about some businesses in a tiny town on the east coast. Then going on to fill two whole pages with images of these business names is a little on the heavy handed side, particularly when it’s not particularly relevant.

Things I Find Exciting/Surprising

The concept of businesses being organised in different types really intrigued me. I knew that there had to be some sort of difference between your little corner store and your major international corporations. I never really thought much about how little businesses around me could vary in themselves.

When I did my tax return two weeks ago, I looked at the bottom of my dad’s group certificate and saw that the business he works for is organised as a trust. Ordinarily, I wouldn’t have any idea what that meant and how it worked. I knew that the business was run by a husband and wife team, but had absolutely no idea how that translated into a business structure. Now I have a better understanding of how their hierarchy and business management functions which now helps me understand when dad comes home and talks about what’s happened during his day.

Recommended Blogs

Top Three Blogs

Finding and choosing my top three blogs was hard. There are so many high quality and dedicated bloggers out there that it was super hard to pick. In the end, I decided to go with Jeanne-Maree Schembri, Erin Hilarie and Alison Stucke.

Blog One - Jeanne-Maree Schembri 

Blog link: https://jeannieschembri.wordpress.com/

This blog I absolutely loved. The wealth of information Jeanne-Maree has included is simply outstanding and I really love her work. Her company is Hosa International Limited and you can tell she really understands her company in all aspects, be it there financial statements, what they do and their aims. She has really gone the extra yard and has included a number of videos, photos and links that provide an extra insight into her company. In reading her work, you can tell she really knows her stuff and is incredibly skilled at translating that onto the page. I was particularly blown away by how succinct and descriptive her key concepts and questions were from her readings of the financial statements. I also really like how she has set out her blog, it is very clean and professional while still maintaining that personal touch that really engages the readers who come by. She has also posted her entire draft assignment in a way that is easy to follow and access, including her financial statements.

Blog Two – Erin Hilarie
Blog link: http://iwannagetfiscal.blogspot.com.au/

Firstly, the title of Erin Hilarie’s blog “Let’s get fiscal!” is simply pure brilliance. Moving on from that, the way that she engages her readers is outstanding in the way that it really captures you and provides for really enjoyable reading. Her smart and witty commentary turns an ordinarily boring and dull topic into something different and entertaining. The use of an interview with her key concepts and questions is genius. Her blog layout is also easy to read and navigate through and sufficiently professional. Her sheer amount of information and effort is also impressive.

Blog Three – Alison Stucke
Blog link: http://datsunthecollie.tumblr.com/

One of the main reasons I enjoy this blog is because of its different layout to everyone else’s. Instead of going with BlogSpot or WordPress, Alison has gone with the more contemporary and popular Tumblr. Her company, Brilliance China Automotive Holdings Limited, also allows for a more “hip” webpage as it deals with higher end automobiles. Her choice of blog type is also more pictorial based which I see as bonus, especially when dealing with such flashy products as BMWs. Her blog also has more of a personal feel that a lot of others, with personal and humorous posts are also scattered between her more serious company related posts. Her draft assignment is also overwhelming full of information and her understanding of her company is immense. 

Aeffe - Key Concepts and Questions (KCQs)

Concerns and Questions

Upon reading Aeffe Group’s financial statements, I was concerned over the fact that the figures from one year’s report were completely different in the next year. I stressed over whether or not this was because I’d found the wrong reports, was looking at the incorrect statement, maybe there were errors in the document. That’s when I noted the asterisk in brackets next to the previous year’s title. Following the asterisk down I found it said:

“(*) Following the retrospective application of the amendment to IAS 19 from 1 January 2013 the comparative figures at 31 December 2012 have been restated as required by IAS 1. More specifically, the figure for closing Equity reported in the Consolidated Financial Statements at 31 December 2012 has decreased by EUR 1,050 thousand, of which EUR 1,039 thousand relates to Equity attributable to owners of the parent and EUR 11 thousand relates to Non-controlling interest. Reference should be made to the section "Accounting policies" for further details.”

This was definitely a “Eureka!” moment for me, and then upon watching the lecture videos listed on Moodle, the issue was further clarified for me. Having no background knowledge of accounting, I never knew that you could have different accounting policies that varied a company’s financial statements so much.

Another concern was that the starting date of the annual period was changed for the Statement of Changes in Consolidated Shareholders’ Equity. In 2011, the year started 31^st December 2010, with the 2012 year also starting on the 31 December of the previous calendar year. However, from there on, the starting date was changed to the 1^st January. This confused me as well until I saw listed on the 2013 Annual Report “IAS 19 revised adoption effect”, which then clued me in that it was a result in their change of accounting policies, just as I had seen occur in the figures earlier.

Critical Business Aspects and Key Challenges Facing Aeffe

Aeffe’s most critical business aspect is their retail market. As witnessed in their annual report, their sales vary dramatically from country to country. As you can see in the included screenshot of Aeffe’s Sales by Geographical Area, the largest overwhelming percentage of sales for them come from Italy, with Europe as a whole making up 67.4% of their total sales for the 2014 calendar year.

Aeffe Group’s sales by geographical area comparison 2013 to 2014

As noted by them further down in their own explanation of these figures, sales in Russia dropped dramatically by 14.1%. 

An article I found of Aeffe’s success also comments on the incredible drop in sales in Russia. The article contends that as a result of the “uncertain economic and geopolitical climate, abetted by a slump in oil prices and trade sanctions imposed by Western countries late last year”, sales in Russia have dropped 53% between the first quarter of 2015 and the same time the previous year.

It goes on to say that Russia used to be Aeffe’s third largest marker outside of Italy and Europe (also evidenced in the statement pictured above), has now fallen below the United States. Such a slump in sales has got to be a key concern to the company, and they will have to evaluate a number of options as to what can be done to counterbalance the slide in sales that is occurring. They either have to find a way to increase sales in the region (which they have been trying to do by decreasing prices) or they will have to focus on another market and create more sales there.

The article can be found at: http://fashionista.com/2015/05/aeffe-q1-2015-russia

One of the key challenges is that being a company in the high fashion industry, Aeffe is incredibly susceptible to the numbers concerning disposable income. With a slowdown in the economic statues of all markets, particularly Europe – their main target market – there just isn’t a large demand for high end, expensive luxury labels when more pressing concerns such as food and shelter consume a large portion of individuals’ income.

Another key challenge or concern is the abdication of Moschino’s CEO, Alessandro Varisco. As of 30^th June 2015, he has stepped down in order to head a womenswear brand Twin-Set Simona Barbieri, leaving the position of CEO vacant. Reports indicate that the duties of the role will be carried out by Massimo Ferretti, executive president of Aeffe and Marcello Tassinari, Aeffe's managing director and chief financial officer until they can find a suitable replacement.

An article detailing this can be found at: http://fashionista.com/2015/06/moschino-ceo-leaves

All of this begs the question, how will this affect Aeffe in the upcoming months? Will it affect sales? Shareholder confidence? Stock prices? Further research into the topic has lead me to believe that Varisco’s abdication will have an effect on the company to some extent. An article I discovered states:

“When the market’s reaction to the CEO news is dramatic, however, a surprising relationship comes into play. Of the 20 companies whose stock popped 5% or more upon the announcement, only 40% sustained a rise over the course of the CEO’s tenure—but of the 14 companies whose stock plunged 5% or more upon the announcement, 79% experienced a long-term gain”  (http://www.newyorkfed.org/research/staff_reports/sr166.pdf)

                             

Aeffe’s stock prices from 30 April 2015 to 29 July 2015

In searching for the announcement date for Varisco’s stepping down, all I can find are articles dated from the 30^th June 2015 onwards. So going off this day as the announcement date, Aeffe’s stock price has increased by approximately 8% in the month since the ‘announcement’. Going off the article quoted above, could this mean that the CEO turnover may not lead to sustained increase? Only time will really tell, and I don’t have the necessary accounting or economic insight and knowledge for me to really evaluate the potential repercussions.

A SWOT analysis of Aeffe indicated that overall, it is a company with many strengths and relatively few weaknesses and while it has few opportunities and a number of threats, it is on the whole a company with great promise and a formidable future.

Their many strengths include their existing distribution and sales network (already having an “in” enables them to focus on extending their reach instead of having to do the hard yards of having to break into the market), their high growth rate, high profitability and revenue, the barriers of market entry for competitors, reduced labour costs and their highly skilled workforce. One of their only weaknesses identified is their tax structure and upon looking at their financial reports, my inexperienced eyes picked up that their tax financials looked a little odd. Their taxes under the income statement of my Company Spreadsheet look like this:

                                               2014                     2013                    2012                     2011 

Taxes                                (2,107,267)          (1,253,908)          (4,579,666)          (2,859,885)

I found such a huge owing in taxes in 2012 to be out of place. How can a company pay €1.7m more tax one year and then go to pay €3.3m less the next? It just didn’t really seem right to me, seeing as the rest of the company’s figures were rather comparable.

Moving on, Aeffe’s opportunities included a growing demand for their products and their new acquisitions. However, their threats were perceived to be tax changes (which ties in with their weakness), the rising cost of the raw materials it takes to create their products, as well as the added increase of the cost of labour and an increase in government regulations.

A basic SWOT analysis can be found here: http://www.swotanalysis24.com/swot-a/2426-swot-analysis-aeffe-s-p-a.html

Business Strategies

Aeffe Group has a very simple business strategy, involving a multi-brand strategy. A multi-brand strategy involves the marketing and sale of similar and/or competing products under the banner of different houses, labels or brands. It can have the benefit of offering products in all price ranges and qualities, providing products for all markets. It also provides for less space for competitors in the market as the multiple brands under the one company saturate the market. It also maintains customers and users who like to change things up and try different brands, meaning they are still buying from the one parent company. The extra added bonus is that it increases productivity of each of the brands as they compete with each other.

With this multi-brand strategy, Aeffe focusses on the management of their brands that are internationally renowned so as to maintain their distinctive and unique style that attracts a wide variety of clientele. 

History of Aeffe

Aeffe Group is a worldwide organisation that deals in the luxury goods and fashion sector, dealing mainly in prêt-a-porter, footwear and leather goods. With the company’s focus lying on “uniqueness and exclusivity”, they develop, produce and distribute products under own-label brands and under licensed brands. Their own label brands include “Alberta Ferretti”, “Philosophy” “Moschino” and “Pollini”, while their licences brands include “Blugirl”, “Cedric Charlier” and “Ungaro”. Aeffe Group also deals in the distribution of other products and accessories that supplement its range such as perfumes, children’s clothes, watches, sunglasses, etc.  Aeffe has a large number of showrooms and flagships stores in Milan, Rome, Paris, London, Los Angeles and many other prestigious fashion cities around the world.

Founded in 1972 by Alberta Ferretti, Aeffe has grown through its incorporation of a number of different clothing brands, particularly as a result of the founder’s own involvement in and love of fashion.

Aeffe Group is divided into two segments: prêt-a-porter and footwear and leather goods.

Prêt-a-porter

1983 saw a partnership between Aeffe and Franco Moschino, a designer of note, who has since been a valuable contributor to Aeffe’s success. Moschino itself grew to become an internationally recognised name brand in the 1990s, continuing on even after the disappearance of its founder with his family, staff and friends keeping the legacy going.

This was followed in 1995 through to 2003, with collaboration by Aeffe with the notorious Jean Paul Gaultier resulting in a self-titled line “Jean Paul Gaultier.”

2007 saw the addition of Velmar, a company that had long played a role in Aeffe’s lingerie and swimwear lines. Aeffe had originally acquired 75% of the company in 2001 and fully acquired the remaining 25% in 2007.

Aeffe’s prêt-a-porter subsidiaries include; Moschino, Velmar, Aeffe USA, Aeffe Retail, Clan Café, Nuova Stireria Tavoleto, Aeffe UK, Aeffe France, Aeffe Japan, Moschino Japan, Moschino Korea, Fashoff UK, Moschino France, Moschino Gmbh, Bloody Mary and Moschino USA.

Footwear and leather goods

This division is mainly consistent of and operated by Pollini and its subsidiaries. The company Pollini itself was established in 1953 in Italy and has since rose to international fame. Aeffe and Pollini reached an agreement in 2001 that added an accessories aspect to Aeffe’s already impressing range of collections and acquired a controlling stake in the company. 2007 saw Aeffe become the sole shareholder, acquiring the remaining 28%.

The footwear and leather goods subsidiaries consist of Pollini Retail, Pollini Suisse and Pollini Austria.

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