Armani Group achieves single-digit growth despite market slowdown

Italian luxury fashion house Giorgio Armani has achieved a 6 per cent growth in net sales at constant currencies despite a slight revenue slowdown in the second half of last year that trickled down into this year.

According to the company, the weakened sales in the first half reflect “an adjustment within the luxury market, especially in the Asia ex-Japan region and the more accessible segment of the offer.

Armani Group’s deputy general director and CCO, Giuseppe Marsocci, said the company’s “strategic decision” to limit retail price increases reflects its long-term focus on sustainable growth over short-term gains.

“Our commercial and business choices always remain oriented towards respecting the values ​​of the brand and its medium-long term perspective, without forcing either sales or margins,” he added.

Last year, the Armani group earned US$2.65 billion and an operating profit of $237 million. Its net income before taxes rose 4.4 per cent to $258 million, with adjusted profit reaching $599 million after $595 million in 2022. Operating profit totalled $237 million.

By region, the European market contributed 49 per cent of the turnover, with the Americas and Asia-Pacific each accounting for 21 per cent. The rest of the world made up 9 per cent of the revenue. 

CEO Giorgio Armani emphasised the importance of maintaining a consistent and pragmatic approach to navigate challenges in the current market environment.

“We are well-prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs,” said Armani.

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