Giorgio Armani Group has released a positive report for 2022, showcasing strong financial results. The company’s net revenues increased by 16.5% to €2.35 billion, with profits growing even faster. This success can be attributed to the company’s strong direct brand revenues and retail sales, leading to a 30% rise in earnings before interest and tax (EBIT) to €202.5 million.

Despite the overall slowdown in the fashion sector in 2023, Armani’s first quarter performances have displayed a promising trend. Net revenues for Q1 have risen by 18% compared to the previous year. The Asian market, which faced challenges in 2022 due to Covid-related issues in China, has rebounded strongly in Q1, with a 14% increase. Europe continues to demonstrate its strength with a 22% rise, while the Americas have recorded a 10% increase. Although the growth in the Americas is lower than last year, the company is confident that the Asian rebound will compensate for this slowdown.

Looking back at the impressive growth seen in 2022, Armani experienced significant milestones. In addition to the notable increases in revenue and EBIT, EBITDA rose by 25% to €289 million. Despite the challenging global economic environment, all sales channels witnessed substantial growth. Direct retail saw a 17% increase, wholesale grew by 16%, and e-commerce experienced a 9% rise. Armani outperformed industry benchmarks, especially in the apparel category.

While Europe and the Americas showed strong revenue growth (24% and 19.5% respectively), Asia faced a decline of 6.3% due to ongoing Covid restrictions in China. However, with these restrictions now in the past, Armani foresees great potential for Asia to flourish in 2023, as evidenced by the strong performance in Q1.

Armani’s medium-to-long-term strategy involves increased investment in communication initiatives, digital and IT infrastructure, as well as store renovation and redevelopment. Although specific figures were not disclosed, this investment has not negatively affected short-term profits. Pre-tax net profits for 2022 reached €218 million, a 16.4% increase compared to the previous year and a 24.5% increase compared to the pre-pandemic period.

The company’s reorganization primarily focused on its three main brands—Giorgio Armani, Emporio Armani, and Armani Exchange. This strategic move contributed to highly satisfactory sales levels and improved growth trends in operating profitability. In 2022, direct brand turnover reached €4.6 billion, with estimated retail sales surpassing €6.5 billion.

Giuseppe Marsocci, Deputy General Manager and Chief Commercial Officer of the group, expressed satisfaction with the progress made towards the objectives set for 2025, which marks the 50th anniversary of Giorgio Armani. Giorgio Armani himself emphasized the effectiveness of the medium-to-long-term strategic path and conveyed his belief in operating with a vision focused on continuity and the values deeply ingrained in his creative and managerial philosophy. Despite the increasingly challenging and competitive global scenario, Armani takes pride in maintaining its independence and stability, thanks to the dedication and hard work of its collaborators and employees.

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