Armani recovers in first half of 2021 with 34% sales rise

The Armani Group's consolidated net revenues at 30 June 2021, showed an overall growth of 34% compared to the first half of 2020.

The growth was driven in particular by the sharp recovery in sales volumes in China and the United States since the beginning of the year, and more recently also in Europe.

In a statement the group said net sales fell 25% in 2020 to €1.6bn, with most of the decline falling in the first half of the year, while in the second half of 2020, and despite new waves of COVID-19 infections and “the state of emergency in Europe,” consolidated net revenue showed a clear recovery.

In 2020, the Armani Group reported positive EBITDA of €263m and negative EBIT of €29m.

After taking into account financial and tax components, the group ended 2020 with a positive consolidated net result of €90m, and the group's financial position also remains decidedly solid, with net cash and cash equivalents of €925m at 31 December 2020, down 'organically' by 24% compared to the level at 31 December 2019.

Giorgio Armani, Chairman and CEO of the Armani Group, said: “The recovery of the first months of 2021, with results already close to 2019 despite the pandemic not yet resolved, together with the resilience shown by the Armani Group in facing the most difficult moment of the pandemic period in 2020, makes me particularly optimistic and determined to continue my medium-long term strategic path.

“The goal is to return to pre-pandemic levels by 2022, with over €4bn in indirect revenues (including licences) and over €2bn in direct consolidated revenues.”

Giuseppe Marsocci, Deputy Managing Director and Chief Commercial Officer of the Armani Group, added: “The drop in revenues in 2020 should be read not only as a consequence of the pandemic and the traffic and consumption crisis, which is particularly penalising for the clothing sector, but also in line with Giorgio Armani's own strategic principle of 'less is more'.

“In fact, the group's choice was to limit the offer of new collections, in response to the current historical moment, with merchandising in shops aligned to the seasons and reflecting the real needs of end customers. All of this by also abiding to the values of sustainability, which are more important today than ever.”