Italian luxury goods company Armani has reported a remarkable 20% increase in sales during the first half of 2022, building on its successful recovery in 2021. In a promising sign for the brand, Armani experienced a swing to an operating profit last year as its revenues surpassed pre-pandemic levels in the latter half of the year.

The company announced that its revenues now consistently exceed the levels achieved in 2019, which lays the foundation for a substantial improvement in operating profitability. However, Armani remains cautiously optimistic about its future prospects due to several potential risks. These include the economic impact of the ongoing Ukraine war, the risk of new waves of Covid-19, and restrictive monetary policies introduced to combat inflation.

In terms of financial performance, Armani’s consolidated net revenue reached an impressive €2.02 billion ($2.1 billion) in 2021, marking a substantial 26.3% increase from the previous year. Sales at the company’s directly-operated shops, which account for over half of its total revenue, saw an exceptional 37% boost compared to 2020.

Furthermore, Armani’s earnings before interest and tax (EBIT) in 2021 amounted to €171.2 million, a significant improvement from the operating loss of €29.5 million in 2020. Giorgio Armani, the Chairman and CEO of the company, expressed cautious optimism, crediting the remarkable growth in 2021 and the positive performance in the first half of 2022 to the success of his brand.

Despite acknowledging the potential risks mentioned, Armani remains confident about its future outlook. The company’s solid recovery and strong sales performance position it for continued growth in the luxury goods market. This positive trajectory demonstrates Armani’s resilience and ability to adapt to challenging market conditions.

Useful links:
1. Armani Official Website
2. Business of Fashion