Armani Group posts strong Q1 sales growth amid Asia recovery

Italy’s Armani Group reported strong sales growth in 2022 which has continued into the first quarter of the current year.

In the 12 months ended December 31, net revenue increased 16.5 percent to 2.35 billion euros, while EBIT rose 30 percent to 202.5 million euros, and pre-tax net profit was up 16.4 percent to 218 million euros.

The group said direct brand revenue including licences exceeded 4.5 billion euros, while retail sales turnover is estimated to have exceeded 6.5 billion euros.

The Milan-based company said the robust 2022 growth proves its “strategy and business model is sound and effective”.

The company said all sales channels registered “significant growth” in 2022, with direct retail up 17 percent, wholesale up 16 percent, and e-commerce up 9 percent.

Breaking it down by geography, a return of travel in Europe and America made them the standout markets, with revenue up 24 percent and 19.5 percent, respectively.

On a less bright note, however, revenue in Asia was down 6.3 percent as the important market continued to be impacted by Covid-linked restrictions in China which were only lifted at the beginning of 2023.

Q1 rebound in Asia sales

That overall sales growth has continued into the first quarter of 2023, with Q1 net revenue up 18 percent amid a rebalancing of sales across geographies: Asia was up 14 percent year-on-year, while Europe was up 22 percent, and America was up 10 percent.

But the company added that there could be a slowdown in growth in the coming months, “hopefully to be offset by the positive trend in Asia”.

In a joint statement, chief commercial officer Giuseppe Marsocci and COO and CFO Daniele Ballestrazzi said: “The adjustment period that followed the decision to reorganise the company’s portfolio by focusing on its three main brands, namely Giorgio Armani, Emporio Armani, and Armani Exchange may be considered concluded on a positive note with highly satisfactory sales levels, corroborated by even better growth trends in operating profitability.

“In 2022, direct brand turnover - represented by sales of Armani branded products made directly by the group and third-party licensees - reached 4.6 billion euros, with estimated retail sales of over 6.5 billion euros. We are advancing, well ahead of schedule, towards the objectives set for 2025, the year that marks the 50th anniversary of Giorgio Armani.”