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Armani sees first signs of a recovery after sales decline

The turnover of the Italian fashion group Giorgio Armani declined for the third consecutive year in 2018, although the company stated that the restructuring strategy had begun to pay off this year.

The group had already warned last year that it would only expect growth again from 2020, largely as a result of an internal reorganization aimed at rationalizing the store network and the brand portfolio into three labels.

Armani

The turnover of the Italian fashion group Giorgio Armani declined for the third consecutive year in 2018, although the company stated that the restructuring strategy had begun to pay off this year.

The group had already started to see it again in 2020, as a result of an internal reorganization aimed at rationalizing the store network and the brand portfolio into three labels.

Giorgio Armani Financials Crisis

In 2018, constant currency exchange rates decreased by 8% (-10% at current rates) to 2.1 billion euros, while earnings before interest, taxes, depreciation and amortization (EBITDA) fell from 438 million euros in 2017 to 314 million euros sank, as the company announced on Friday.

TAYLOR SWIFT INTERVIEW 2019

“I am confident that we have chosen the strategic direction that is best suited to consolidate the leading position of the Armani Group and its luxury / lifestyle brands,” said Giorgio Armani, just 85 years old is and still holds the positions of Chairman, CEO and General Manager.

The positive signals for the sales of the spring / summer season 2019 in the first half of the year confirmed that the label founded 44 years ago, which is the second largest in Italy after Prada, is on the right track.

The Group has a strong liquidity of 1.3 billion euros at the end of last year, 300 million euros more than in the previous year. Armani said that this will allow the group, which has no debt, to remain independent and increase future investments based on its own funds.

In 2018 investments increased by 28% to 106 million euros.

Total brand sales, including royalties, amounted to 3.8 billion euros, which is 2017 without currency fluctuations.

Although he has founded a foundation on his behalf, pointing out that part of his high-end fashion empire should be transferred to the charitable organization, the designer has still not named a successor in case of resignation.

The group announced on Friday the appointment of two deputy directors, one responsible for markets and trading activities and the other for finance and operations.

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