In the 2024 financial year, the consolidated net turnover of the Armani Group was 2.3 billion euros. This corresponded to a decline of six percent compared to the previous year. Adjusted to change course changes, the proceeds dropped by five percent. Sales in their own retail “shrank only by three percent despite various temporary closures due to renovation work”.
“In an international macroeconomic and geopolitical context, which is characterized by persistent tensions and high uncertainty, and despite the specific weakening of the fashion and luxury sector, the Armani Group achieved solid and positive consolidated business and financial results in 2024, although at the level of the previous year,” said the company in a message.
The group keeps the operating expenses stable
The Armani Group emphasized that the operating costs in 2024 remained within the framework of the planning despite the market recovery. At the same time, investments reached the new record level of 332 million euros. They were about twice as high as 2023 and almost three times as high as the average annual investments in the previous years.
These investments included the renovation of numerous important flagship stores of the group, such as the boutique on the Madison Avenue in New York, Emporio Armani Milano and the Palazzo Armani in Rue François 1 Series, as well as the integration of e-commerce management.
“Despite the market recovery and the numerous challenges that arise from the international context in the second half of 2023, I acted consciously in 2024 with a view to the future,” emphasized Chairman and CEO Giorgio Armani in a statement. “Therefore, I decided to invest in projects of great symbolic and practical importance that are fundamental for the future of the company. Nevertheless, the year 2024 was concluded with positive results. This is the result of a solid and prudent management that further underlines the solidity of the group.”
From a geographical point of view, as in the previous year, as in the previous year, 49 percent of the consolidated net turnover accounted for Europe. America contributed 22 percent, while the proportion of the Asian-Pacific region rose to around 19 percent, which in particular reflected the weakening of the Chinese market.
The result before interest, taxes and depreciation (EBITDA) reached a height of 398 million euros in 2024, which meant a decrease by 24 percent compared to the previous year. The result before interest and taxes (EBIT) and the profit before tax were 67 million euros or 74.5 million euros. This corresponded to the EBITDA level and took into account the effects of the numerous extraordinary investments.
Armani Group: moderate pricing policy
“We have chosen a moderate price policy with increases below the inflation rate and for a sales that is geared towards quality instead of quantity,” said Giuseppe Marsocci, the deputy managing director and Chief Commercial Officer of the Armani Group. “This can be seen in the stable number of boutiques. We have no pressure to open up new business, and a very selective approach. In the end, we decided to give priority to product quality and customer experience, even at the expense of short -term loss of margin losses. We are convinced that this decision will make us more competitive if the market begins to grow again.”
“I am convinced that the best strategy for long -term success is based on striving for coherence and continuity and not for quick profits,” emphasized CEO Armani “I am very proud that, thanks to this approach, we have preserved the independence and stability of the group in an increasingly complex and competitive global context.” He was also “confident that the current market swells and international tensions will be reduced in the near future,” emphasized Armani.
This article was used with digital tools translated.
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