Armani Group reports net revenue growth in 2019
The Armani Group has released its' operating and financial highlights of 2019, reporting net revenue at the group rose 3.2% year on year to £1.8 billion (€2.1billion).
The Group is continuing to implement its investment plan to upgrade their brand portfolio and distribution network.
The 3.2% net revenue result made it possible for the Group to achieve the goal of returning to revenue growth a year in advance of its plan, thanks primarily to the positive performance of comparable sales (+7% compared to the previous reporting period) in the directly managed store and e-commerce network.
The Group has been planning for a three-year period of overall turnover reduction as part of a strategy to streamline, with a view to achieving medium/long-term results.
This strategy, announced in 2017, provided for an exclusive focus on the Giorgio Armani, Emporio Armani and A|X Armani Exchange brands. In this context, the classic diffusion lines – “Armani Collezioni” and “Armani Jeans” – were integrated and merged into the Emporio Armani and A|X Armani Exchange lines.
In 2019, brand revenues, including licences, amounted to £3.71 million (€4.16 million), an increase of 9% compared to the previous reporting period, highlighting better performance than forecast, following roll-out of the above strategy.
At the end of 2019, the group’s net cash (and cash equivalents) levelled at £1 billion (€1.2 billion), compared to £1.2 billion (€1.3 billion) at the end of 2018.
The group said this was as a result of greater investment in working capital represented by collection and store renewal projects, as well as the stock of goods offered in the group's broader network of directly managed stores.
From the onset of the health emergency caused by the COVID-19 pandemic, the Group implemented all measures deemed necessary for ensuring the safety of employees, customers and operators. Increasingly stringent precautionary measures were taken at its headquarters and the Group's stores, restaurants and hotels around the world.
In the results, Armani Group said: "In addition to emergency management, the Group immediately implemented more rational calendars for designing and shipping goods, and selling product in stores, aligning them with genuine seasonality and the real needs of end consumers – a decision consistent with the principle of reducing inefficiencies and waste, and in line with the now widespread demands for sustainability that are crossing all sectors.
"Although it is not yet possible to accurately estimate the ultimate economic impact of the COVID-19 pandemic, the Group has both the resources and a solid capital and financial structure that will enable it to cope with uncertainties and ensure it continues resolutely in implementing its strategic plan – a plan based on quality and on the Armani brand identity, as well as on current and future corporate initiatives."