Italian fashion brand Giorgio Armani achieved a remarkable return to sales growth in 2019 and exceeded its target a year ahead of schedule. This achievement can be largely credited to the company’s strategic efforts in simplifying its distribution and brand portfolio, resulting in just three labels. However, the luxury industry has been severely impacted by the COVID-19 pandemic, making it challenging to accurately assess the current state of affairs. Nevertheless, Giorgio Armani remains optimistic about its ability to navigate through these uncertainties successfully.

In 2019, Giorgio Armani witnessed a 2.3% increase in net sales, reaching an impressive 2.158 billion euros ($2.44 billion). This growth was primarily driven by a notable 7% surge in comparable sales within the brand’s directly managed stores and its e-commerce network. Additionally, the brand’s overall revenues, including licenses, experienced a remarkable 9% rise, totaling 4.157 billion euros. However, earnings before tax experienced a decline of approximately 12%, amounting to 175 million euros. Despite this, net earnings still amounted to 124 million euros. Moreover, Giorgio Armani ended 2019 with a strong liquidity position of 1.2 billion euros, compared to 1.3 billion euros the previous year.

These optimistic results demonstrate Giorgio Armani’s ability to adapt and persevere in the face of challenges within the luxury industry. The brand’s effective streamlining of operations and focus on key labels have proven to be advantageous. Although the COVID-19 pandemic has presented unforeseen obstacles, Giorgio Armani remains confident in its ability to overcome these difficulties and continue thriving in the future. With a solid financial position and an unwavering commitment to excellence in design and craftsmanship, Giorgio Armani continues to assert its dominance in the fashion world.

Useful links:
Official Giorgio Armani Website
Giorgio Armani 2019 Results Article