Armani bets on growth with record €332m investment despite revenue dip

The Armani Group has reported a 5% dip in revenues during 2024, despite a challenging global backdrop and a slowdown across the fashion and luxury sector. Though revenues and profits declined year-on-year, the group emphasised its long-term strategy, doubling down on record investments.

Despite a 5% drop in consolidated net revenues to €2.3 billion (£1.95 billion) at constant exchange rates and a 24% decline in EBITDA to €398 million (£344 million), Armani’s leadership characterised the results as "solid and positive" amid sector-wide pressures.

In a year described as “exceptional for investments,” the Armani Group committed €332 million (£2.79 million) - nearly double the €168.5 million (£145 million) invested in 2023. These investments spanned flagship store renovations in New York, Milan and Paris, the insourcing of e-commerce operations, and significant real estate acquisitions.

Giorgio Armani, Chairman and CEO of the Armani Group, said: "During 2024, while well aware of the market slowdown already evident in the second half of 2023 and of the many challenges arising from the international context, I continued to operate with an eye to the future.

"It is with this in mind that I chose in any case to invest in projects of great symbolic and practical significance, which are fundamental to the future of the company. The year 2024, however, closed with positive results, the fruit of solid and prudent management, further confirming the Group’s solidity."

From a geographic perspective, Europe remained the strongest market, accounting for 49% of revenues, followed by the Americas (22%) and Asia Pacific (19%).

Giuseppe Marsocci, Deputy Managing Director and Chief Commercial Officer, added: "We opted for ‘moderate’ pricing policies, with increases below the rate of inflation, and for distribution focused on quality rather than quantity...

"Ultimately, the decision was to prioritise product quality and the customer experience, even at the cost of sacrificing margins in the short term, in the conviction that this choice will make us more competitive when the market returns to growth."

Armani concluded: "I am convinced that pursuing consistency and continuity and avoiding the pursuit of immediate gains is the best strategy to ensure long-term success.

"Thanks to this approach, in an increasingly complex and competitive global environment, I am proud to say that we have maintained the Group’s independence and stability. I am confident that the current market difficulties and international tensions will ease in the near future."

Georgio Armani, who founded the fashion label in 1975, is still heavily involved with the brand. However, for the first time in his five-decade career, Giorgio Armani did not take his final bow at Milan Fashion Week last month, as the 90-year-old designer recovered at home following a brief hospital stay.

He is expected to attend the label’s upcoming shows in Paris in July, as the brand prepares to mark its 50th anniversary alongside Armani’s 91st birthday.