Armani annual sales rise despite slowdown in second half

Giorgio Armani has reported an increase in annual revenue, despite a single-digit slowdown in the second half of 2023. 

Despite a slowdown in the second half, the Italian fashion house  saw full-year revenue rise 4% to £2 billion (€2.445 billion).

Through the first six months of 2024, a further weakening in sales reflects "an adjustment within the luxury market, especially in the Asia ex-Japan region and the more accessible segment of the offer" as compared to an "excellent" first half of 2023.

All sales channels registered growth in 2023 against 2022, with a balanced distribution in terms of both channels and geography.

Direct retail accounted for 54% of consolidated revenue, while wholesale (represented by franchisees, department stores and selected multi-brand stores) generated 38%, and royalties from licences and other revenues made up the remaining 8%.

From a geographic standpoint, Europe generated 49% of consolidated net revenues in 2023, the Americas and Asia Pacific were balanced and both contributed 21% to the group's net revenues, and the rest of the world accounted for 9%.

EBIT and EBITDA remained in line with the previous year, and net profit before tax was £189 million (€224.5 million), up 4.4%.

Daniele Ballestrazzi, Deputy General Manager and Chief Operating & Financial Officer at Armani Group," said: "Despite the slowdown in the second half of 2023 and numerous critical challenges in the international context, the year ended on a positive note, underscoring the group's solidity.

"I remain steadfast in my belief that a focus on continuity and a pragmatic, consistent approach—independent by current trends and market conditions and rooted in the principles that have always underpinned my creative and managerial philosophy—is the only way to navigate the challenges and uncertainties that characterise today’s environment.

"We are well-prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs."