Armani posts single-digit sales decline in first half | kbnmart

Italian fashion house Giorgio Armani managed to keep its operating profit flat last year and net sales grew by 6% at constant exchange rates, despite a “single-digit” slowdown in revenues in the second half of the year that has continued this year.

The weakness in sales observed during the first six months of 2024 reflects “an adjustment within the luxury goods market, particularly in the Asia ex-Japan region and the more accessible part of the supply,” Armani said in a statement.

Armani said the group raised retail prices only modestly, despite rising inflation that pushed up costs, because it remained focused on medium-term goals and would not use prices to boost sales and margins at the same time.

“We are well prepared to manage market downturns without having to maximize profit from year to year at any cost,” Giorgio Armani, who turned 90 earlier this month, said in a statement.

“I remain steadfast in my belief that a focus on continuity and a consistent, pragmatic approach… is the only way to overcome the challenges and uncertainty that characterize today’s environment,” added Armani, who serves as chairman and chief executive of the group he founded.

The Milanese group, which generates more than half of its revenues in Europe, had a total operating profit of €215 million.

The family-owned group posted net revenues of €2.45 ​​billion ($2.65 billion) last year. ($1 = 0.9244 euros)