strategic investments
In line with its medium-long term strategy, the Armani group has chosen to dedicate an increasing volume of resources to communication initiatives (+22% compared to 2021) and investments, especially in the digital structure. and IT of the group, as well as in the restructuring and development of stores (+25% compared to 2021).
Net profitability and comments from top management
This important economic and financial commitment has not compromised the increase in short-term economic results: in 2022 the Armani group in fact achieved a pre-tax net profit of 218 million euros, an increase of 16.4% compared to 2021 and by 24.5% compared to the pre-pandemic levels recorded in 2019. «With the satisfactory sales levels corroborated by even better growth trends in operating profitability, we can consider the adjustment period following the decision to reorganize the brand portfolio as positively concluded on the three main brands, Giorgio Armani, Emporio Armani and Armani Exchange – commented Giuseppe Marsocci, deputy general manager and Chief commercial officer of the Armani group and Daniele Ballestrazzi, deputy general manager and Chief pperating & financial officer of the Armani group -. In 2022, induced revenues – represented by the sales of Armani-branded products made directly by the group and by third-party licensees – reached 4.6 billion euros, with estimated sales at retail values of over 6.5 billion euros. We are advancing well ahead of schedule, towards the objectives set for 2025, the year in which the fiftieth anniversary of the birth of Giorgio Armani occurs».
The trends of the first quarter of 2023
The positive signs of the first months of 2023 seem to confirm the start of 2022. The first quarter ended with net revenues up by 18%, essentially confirming the balanced growth between the various channels and the increase in operating profitability. At the geographical level, there is a significant change compared to 2022 with a more balanced trend between the regions, Asia is recovering (+14%), and the trend is still positive in Europe (+22%) and, although more contained , in America (+10%). where a slowdown is foreseeable in the coming months, which will hopefully be compensated by the positive dynamics in Asia.
The satisfaction of Giorgio Armani
«The medium-long term strategic path that I have chosen to undertake continues to prove effective and the results prove it: 2022 ended with further growth that continues in the first quarter of 2023, confirming the solidity of the group – commented Giorgio Armani, president and CEO of the Armani group –. I am firmly convinced that operating in a perspective of continuity, following a concrete and coherent approach, focused on the values that have always been the basis of my creative and managerial philosophy, is the only way to face the challenges and unexpected events that characterize the current scenario. In an increasingly difficult and competitive context, I am proud of having managed to maintain my independence and the stability of the group, thanks also to the work and commitment of my collaborators and employees».
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