Restructuring negatively impacts Giorgio Armani's FY17 sales and profit

The Armani Group has said through a media statement that the company achieved positive results in 2017, with net profits of 325 million euros (376.7 million dollars) on 2,335 million euros (2,706,5 million dollars) of net revenues, down 7 percent at actual exchange and 5.8 percent at constant exchange. The company said, these results fit in the context of an anticipated and contained decline in net revenues and operating margins, attributable to the consolidation and rationalisation of its international distribution network and the implementation of its strategy to simplify and consolidate its portfolio of lines.

The strategic development announced by the group in February 2017, includes an exclusive focus on Giorgio Armani, Emporio Armani and Armani Exchange brands. In this context, the company added that the Armani Collezioni and Armani Jeans brands have been integrated and merged into the Emporio Armani and Armani Exchange lines, respectively. This reorganisation, the Group said, is expected to result in a gradual and temporary decrease in net revenues and proportionally in related margins, over the next two years, to definitively leave the way open for a new phase of development and growth in 2020.

The company’s indirect revenues, including licences, amounted to 3,926 million euros (4,551.6 million dollars), which the company said remained unchanged when compared with the previous year. Gross operating profit (EBITDA) amounted to 438 million euros (507.8 million dollars) or 18.7 percent of net revenues, down 5.4 percent compared to 2016.

Net profit before taxes amounted to 325.4 million euros (377 million dollars) compared to 349.9 million euros (405.5 million dollars) in 2016, while net profit after taxes reached 242.4 million euros (280.9 million dollars) compared to 270.9 million euros (314 million dollars) in 2016.

Picture:Facebook/Giorgio Armani