MILAN – Italian fashion house Armani managed to maintain stable operating profit last year and increase net sales by six percent in constant currencies, despite a “single-digit” slowdown in second-half revenue that continued this year.
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The weakening of sales observed in the first six months of 2024 reflects “an adjustment in the luxury market, especially in the Asian region, with the exception of Japan and the more affordable segment of the offer,” Armani said in a statement, writes Seebiz.
Armani said the group raised retail prices only modestly, despite higher inflation pushing up costs, because it remained focused on medium-term goals and would not use prices to boost sales and margins in the interim.
“We are well positioned to manage the market slowdown without having to maximize annual profits at all costs,” said Giorgio Armani, who turned 90 earlier this month.
“I remain firm in my belief that a focus on continuity and a pragmatic, consistent approach is the only way to deal with the challenges and uncertainties that characterize today’s environment,” added Armani, who is chairman and CEO of the group he founded.
The operating profit of the Milanese group, which generates more than half of its revenues in Europe, amounted to a total of 215 million euros.
The family-owned group generated net income of 2.45 billion euros ($2.65 billion) last year. Biznis.rs
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