Armani Group: Net revenues down 5 percent in FY 2024

Consolidated net revenues of the Armani Group amounted to 2.3 billion euros, a decrease of 5 percent compared to the previous year at constant exchange rates (down 6 percent at current exchange rates). The decline in direct retail revenues was 3 percent at current exchange rates "despite various temporary closures for renovations."

"In an international macroeconomic and geopolitical context marked by ongoing tensions and high uncertainty, and despite the specific slowdown in the fashion and luxury sector, the Armani Group achieved solid and positive consolidated economic and financial results in 2024, albeit down on the previous year," the company said in a statement.

Armani Group manages operating costs amid luxury slowdown

What characterises 2024 for the Armani Group is the maintenance of the expected operating costs, despite the market slowdown, while sustaining a record level of investments of 332 million euros, approximately double the investments made in 2023 and almost triple the average annual investments of previous years.

These investments included the renovation of many important flagship stores of the group, such as the Madison Avenue building in New York, Emporio Armani Milano, as well as Palazzo Armani in Paris, the new headquarters on Rue François 1er. and the insourcing of ecommerce management.

"During 2024, while aware of the market slowdown already evident in the second half of 2023 and of the numerous challenges arising from the international context, I continued to operate with an eye to the future. It is with this spirit that I nevertheless chose to invest in projects of great symbolic and practical significance, fundamental to the future of the company. 2024, however, closed with positive results, the result of solid and prudent management, further confirming the solidity of the group", said Giorgio Armani, chairman and CEO of the Armani Group.

From a geographic perspective, Europe continued to generate 49 percent of consolidated net revenues in 2024, in line with the previous year. The Americas accounted for 22 percent, while Asia Pacific fell to approximately 19 percent, slightly lower than in 2023, reflecting in particular the slowdown in the Chinese market.

Ebitda post IFRS 16 reached 398 million euros in 2024, down 24 percent compared to the previous year. Ebit and profit before taxes stood at 67 million euros and 74.5 million euros, respectively, in line with Ebitda levels and considering the impact of the numerous extraordinary investments made. Net operating income reflects a single-digit decline in revenues.

Armani Group adopts moderate pricing policies

"We have opted for moderate pricing policies, with increases lower than the inflation rate, and for a distribution focused on quality rather than quantity, as demonstrated by the stability of the number of stores, without pressure to open new stores and with a very selective approach. Ultimately, the decision was to prioritise product quality and customer experience, even at the cost of sacrificing margins in the short term, in the belief that this choice will make us more competitive when the market starts growing again", adds Giuseppe Marsocci, deputy managing director and chief commercial officer of the Armani Group.

"I am convinced that pursuing coherence and continuity and avoiding the pursuit of immediate gains is the best strategy to ensure long-term success. Thanks to this approach, in an increasingly complex and competitive global context, I am proud to say that we have maintained the independence and stability of the group. I am confident that the current market difficulties and international tensions will ease in the near future", concludes Giorgio Armani.