Italian fashion house Giorgio Armani maintained steady operating profit last year and achieved a 6 per cent growth in net sales at constant currencies, despite experiencing a ‘single-digit’ revenue slowdown in the second half, which has persisted into this year.
The decline in sales during the first six months of 2024 reflects “an adjustment within the luxury market, particularly in the Asia ex-Japan region and the more accessible segment of the offer,” Armani stated.
Armani noted that the group had only modestly increased retail prices, despite rising costs due to higher inflation, as it remained focused on medium-term goals and did not want to inflate sales and margins artificially.
“We are well-prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs,” Giorgio Armani, who turned 90 earlier this month, said in a statement.
“I remain steadfast in my belief that a focus on continuity and a pragmatic, consistent approach is the only way to navigate the challenges and uncertainties that characterise today’s environment,” added Armani, who is chairman and chief executive of the group he founded.
Operating profit for the Milanese group, which generates more than half of its revenues in Europe, totaled € 215 million.
The family-owned group reported net revenues of € 2.45 billion (US $ 2.65 billion) last year.
