Armani Group has reported a 4% increase in revenue in 2023, coming in at €2.45 billion EUR (approx. $2.65 billion USD). The fashion group stated it experienced a "single-digit slowdown in the second half of 2023 and 2024" but maintained growth for the full year.
The company continued that the 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."
Luxury sales in Asia have declined across the board as multiple top luxury groups like LVMH and Kering have reported losses in the key market. LVMH experienced a 14% net profit drop in the first half of 2024 while sales at Kering dropped 20%. Armani has also felt the effects of this shift with Asian customers but a global customer base kept growth steady.
To explain one of the factors behind the sales drop, Deputy General Manager Giuseppe Marsocci stated, "In recent seasons, we have sacrificed some margin points to avoid raising retail prices to the levels that inflation would have dictated."
Armani is "well prepared to manage a market slowdown without needing to maximize year-on-year profit at all costs" according to Giorgio Armani, the brand's founder, CEO and chairman.
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