Giorgio Armani, the renowned Italian fashion group renowned for its high-end products, has experienced a significant surge in sales during the initial six months of 2021. The company witnessed a remarkable 34% increase in sales, primarily attributed to a rebound in business in China and the United States. While cautiously optimistic about its recovery, Giorgio Armani acknowledges that it may take until next year to fully recover from the devastating impacts of the pandemic.

Chairman and CEO Giorgio Armani has expressed the company’s goal of returning to pre-pandemic revenue levels by 2022, with a target of over 2 billion euros in direct consolidated revenues. In 2020, the company reported a 25% decline in consolidated net sales, reaching 1.6 billion euros ($1.9 billion), with the majority of the decline occurring during the first half of the year.

The global luxury goods industry suffered a sharp decline in sales last year, predominantly due to the pandemic’s consequences, including shop closures and a halt in international tourism. Giuseppe Marsocci, Armani’s Deputy Managing Director, emphasized that the decline in revenues in 2020 was not solely a result of the pandemic but also aligned with Armani’s strategic principle of ‘less is more’.

Although Giorgio Armani did not disclose the exact value of total sales during January to June, it did indicate that the positive sales trend during the first half of the year sets the stage for a more prosperous scenario in 2021. In 2020, the company achieved a consolidated net profit of 90 million euros but reported an operating loss (EBIT) of 29 million euros.

Giorgio Armani also indicated a significant improvement in its financial position during the first half of the year, with net cash and cash equivalents amounting to 1.088 billion euros. This ensures the necessary financial resources for the group’s medium to long-term stability and growth.

Recent rumors have centered around Giorgio Armani’s succession plans, particularly after the 87-year-old designer expressed a willingness to collaborate with another Italian firm. Reports have suggested that John Elkann, a member of Italy’s influential Agnelli family, may explore a partnership with Armani as part of his plans to establish a luxury conglomerate.

In conclusion, the surge in sales during the first half of 2021 presents a positive outlook for Giorgio Armani’s recovery from the challenges imposed by the pandemic. With a renewed focus on profitability and stability, Armani is determined to return to its pre-pandemic levels and continue its success in the luxury fashion industry.

Useful links:
1. https://www.businessoffashion.com/articles/news-analysis/giorgio-armani-sales-rebound-italian-fashion
2. https://www.reuters.com/article/us-armani-accounts-idUSKBN2E71BK