Armani enjoys strong 2005

Fashion and luxury goods purveyor Giorgio Armani saw net profit for the year ended 31 December 2005 leap 22.7 percent to €154.8 million. The increase was boosted by €39.8 million in extraordinary income from real estate and stock market deals. Armani himself received €100 million in dividends as sole shareholder last year. The introduction of his couture line Giorgio Armani Privé and the joint venture he formed to expand the A|X Armani exchange brand helped “close the circle on our multi-brand approach� and led to a “record-breaking year�, he said in the annual report's opening letter. Meanwhile, the operating profit was in line with preliminary figures released in April. Net earnings rose 17.6 percent to €191.4 million, while sales gained 10 percent to €1.43 billion. Figures were most significantly boosted by Armani's sale last year of 49 percent of ManzoniUno Srl, the company that owns its flagship in Milan , to another company controlled by the Italian designer for €18.4 million. The other 51 percent had been sold off to another company owned by Armani in 2004. The group also received €21.1 million from its 1.5 percent stake in eyewear company Safilo SpA, a company which manufacturers the brand's eyewear.

The outlook for the second half was optimistic. “There is a considerable and steady rise in retail sales in key international markets, particularly the Far East and Europe , and significant growth in the orders portfolio, especially in the accessory and home lines,� the company said. The group invested €36 million into its retail network, opening 41 stores and renovating 22 existing shops. It will open a new flagship and corporate headquarters in the Ginza district of Tokyo next fall. It also plans to double the size of its A|X Armani Exchange chain over the next three years. Further to this, the company is buying out all the minority shareholders in its manufacturing subsidiaries. To this end, Armani just acquired 40 percent of apparel manufacturer Borgo 21 for €35.2 million. “(Giorgio Armani) has now acquired total control over the companies that manufacture and market Giorgio Armani label clothes,� the company said.