The logo of Giorgio Armani’s fashion brand is pictured at an Armani shop in Via Sant’Andrea, part of Milan’s so-called fashion district “Quadrilatero della Moda” on May 18, 2020 as the country’s is easing its lockdown aimed at curbing the spread of the COVID-19 infection, caused by the novel coronavirus. Restaurants and churches reopen in Italy on May 18, 2020 as part of a fresh wave of lockdown easing in Europe and the country’s latest step in a cautious, gradual return to normality, allowing businesses and churches to reopen after a two-month lockdown. (Photo by Miguel MEDINA / AFP)
Milan, Italy — The Armani Group saw a four percent rise in revenues last year, the luxury fashion group said Monday, while acknowledging a slowdown in Asia that was crimping sales this year.
Revenues grew by four percent to 2.45 billion euros ($2.65 billion) in 2023, the company said in a statement.
But it cited a “single-digit slowdown in the second half of 2023 and 2024”, which it said was in line with declines seen at other luxury brands.
READ: French luxury giant LVMH half-year net profit drops 14%
Those slowing revenues “reflect an adjustment within the luxury market, especially in the Asia ex-Japan region and the more accessible segment of the offer, with a single-digit decline in revenues recorded in the second half of 2023 and confirmed in the first half of 2024, as compared to an excellent first half of 2023,” the company said.
Slowing growth in China, the world’s second-largest economy and a key market for luxury goods, has cut into sales for top fashion brands.
Last week, LVMH, the world’s largest luxury group, said its half-year net profit slid 14 percent in an uncertain economic environment.
At Armani Group, pre-tax net profit rose 4.4 percent last year to 224.5 million euros, with adjusted profit reaching 523 million euros after 519 million in 2022.
“In recent seasons, we have sacrificed some margin points to avoid raising retail prices to the levels that inflation would have dictated,” Deputy General Manager Giuseppe Marsocci said in the statement.
Giorgio Armani, the brand’s founder, CEO and chairman, said the company was “well prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs”.