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Armani reports strong recovery in 2021, and continued growth in H1 2022

By Danielle Wightman-Stone

20 Jul 2022

Business

Image: Giorgio Armani/SGP

The Armani Group has reported “remarkable growth” in 2021, as revenues returned to pre-pandemic levels, which it has sustained into 2022, as H1 revenue are up 20 percent, compared to the first half of 2021.

For 2021, the Armani Group reported consolidated net profits of 169.9 million euros, a 43 percent increase compared to pre-pandemic levels of 2019, as its “less is more” strategy to streamline the size of its collections pays off, one full year ahead of plans.

“The trends during the first months of 2022 further confirm and sustain the results achieved in 2021 by the Group, whose performance, when viewed against the worst periods of the pandemic, represented a sharp recovery that was achieved remarkably faster than expected,” explained Armani in a statement.

Consolidated net revenues reached 2.02 billion euros, a 26.3 percent increase compared with 1.6 billion euros in 2020. This was a 6.3 percent drop compared to 2019, but surpassed 2019 levels in the second half of the year, with Armani stating that these results were “well above” those forecast for 2021.

Net revenues from the Group's directly-operated stores reporting growth of 37 percent over 2020, and now account for more than 50 percent of consolidated net revenues.

Total revenues for 2021 from Armani-branded products realised directly by the Group and by third-party licensees, totalled 4.05 billion euros, a 23.7 percent increase over 2020 (3.278 billion euros). The Milan-based group added that profit before interest and taxes (EBIT) amounted to 171.2 million euros, compared to an operating loss of 29.5 million euros in 2020.

Giorgio Armani Group recovery one year ahead of plans following strong 2021 results

Giuseppe Marsocci, deputy general manager and chief commercial officer of the Armani Group, and Daniele Ballestrazzi, deputy general manager and chief operating and financial officer of the Armani Group, said in a statement: "One full year earlier than planned, the Armani Group achieved more than 4 billion euros in turnover of Armani brands including licenses and more than 2 billion euros in direct consolidate revenues.

“These results are even more encouraging given that they were achieved without undue pressure on sales opportunities, but rather by streamlining the size of the collections, implementing an attentive selection of the distribution network, in line with the brand's founding principle: 'less is more', and improving the quality of the Armani experience offered to the end consumer."

Armani reports 20 percent growth in H1 2022

The growth in 2021 is continuing this year despite the geopolitical crisis in Eastern Europe between Russia and Ukraine and the possible economic recession, added the group, as the first six months of 2022 grew by 20 percent compared to the first half of 2021, and now “constantly exceed the levels achieved in 2019”.

This growth has given the group optimism for the future, however, it did note that there were potential risks to operating profits for the second half of the year, including the ongoing war in Ukraine, new waves of pandemic and the tightening of restrictive policies by central banks, aimed at containing inflationary dynamics.

Giorgio Armani, chairman and chief executive of the Armani Group, added: "The remarkable growth achieved in 2021, consolidated by the positive performance in the first half of this year, makes me cautiously optimistic. I am also increasingly determined to continue my medium to long-term strategic path, staying true to the principles that have always underpinned my creative and business philosophy and applying them to all aspects of our strategy.

“This solid and consistent approach has proven to be efficient, even, and especially during these last few years, which have been so complicated for our personal and professional lives. Our Group proved to be healthy, from a capital and financial perspective, and this provided some relative respite, even in the face of a potential aggravation of the international scenario.”

Armani
Armani Group
Giorgio Armani
Giorgio Armani Group