Armani Group Reports 24% EBITDA Drop and 5% Sales Decline in 2024

The Armani Group is losing steam and attributes this to the general decline in luxury goods. The Italian company has reduced its turnover by 5% in the last fiscal year, to €2,300 billion ($2,712 billion).The reduction in revenue from the direct retail channel was 3%, due to “temporary closures for reforms” and the general situation “of the fashion and luxury market,“ according to a statement.

The gross operating profit (ebitda) reached 398 million euros, a reduction of 24% compared to the previous year, which was €523 million ($630,8 million). Net profit before tax was 74.5 million euros, 66% less than the previous year, when it reached €224.5 million ($264,7 billion).The group’s chairman and CEO, Giorgio Armani, says they have had to “sacrifice margins” in the short term in order to “be more competitive when the market returns to growth.“

Europe was the company’s main market, absorbing 49% of consolidated revenues. It was followed by the Americas, with 22%, and Asia-Pacific, with 19%. The company highlights “the particular slowdown in the Chinese market”.

Armani ended the year with a 66% drop in net income

This year, Armani Group has made “record investments” amounting to €332 million, twice as much as in 2023 and almost three times more than the annual average of previous years. Among them, the group highlights the renovation of its flagships such as the one located in the Madison Avenue building in New York, Emporio Armani Milano, Palazzo Armani and the new Parisian headquarters on rue François.

The Chairman assures that “2024 has closed with positive results, the fruit of solid and prudent management”. Armani speaks of the “market slowdown”, which has been felt since the second half of 2023 and the “numerous difficulties resulting from the international context”. “I have decided to invest in projects of great importance, both symbolic and concrete, which are fundamental for the future of the company,“ he adds.

Finally, Armani maintains that it has maintained a policy of “moderate prices”, with increases lower than the inflation rate, and for a distribution “more oriented to quality than quantity”. As for the opening of points of sale, they have remained “stable”, being selective with the chosen locations.

Giorgio Armani, 90, missed one of his runway events last month for the first time in his career when he was unable to attend his group’s two shows at Milan fashion week.