“Our commercial and business decisions are consistently guided by a commitment to uphold our brand values and a focus on medium- to long-term objectives, without forcing either sales or margins. This is exemplified by our containment of price increases. In recent seasons, we have sacrificed some margin points to avoid raising retail prices to the levels that inflation would have dictated.
This strategic approach is confirmed by the stability in the number of our directly managed boutiques, where openings and closures throughout the year effectively offset each other, as well as the selective reduction of point of sales in the wholesale channel, including those operated by licensees. These measures allow us to achieve business results that are healthy, robust, balanced, and organically aligned to market conditions”, comments Giuseppe Marsocci, Deputy General Manager and Chief Commercial Officer of the Armani Group.
The medium-long term outlook is also confirmed by the fact that in 2023, the Group’s investments, linked to the restructuring of the direct shop network and ongoing commitment to the development of digital and IT structure, doubled compared to 2022, rising from 70.5 to 142.5 million euros.
Despite the progressive acceleration of investments, the Armani Group’s financial and capital structure remains solid and allows it to adequately support the management and self-financing of its investment plans: at the end of 2023, net cash and financial investments amounted to 1,034 million euros (1,101 million euros at the end of 2022), while shareholder equity stood at 2,100 million euros, corresponding to approximately 50% of total assets.
“This substantial economic and financial commitment to long-term goals has not compromised our short-term performance: in 2023, the Armani Group achieved a pre-tax net profit of 224.5 million euros, an increase of approximately 4.4% compared to 2022”, explains Daniele Ballestrazzi, Deputy General Manager and Chief Operating & Financial Officer of the Group.
“Despite the slowdown in the second half of 2023 and numerous critical challenges in the international context, the year ended on a positive note, underscoring the Group’s solidity. I remain steadfast in my belief that a focus on continuity and a pragmatic, consistent approach—independent by current trends and market conditions and rooted in the principles that have always underpinned my creative and managerial philosophy
It is the only way to navigate the challenges and uncertainties that characterise today’s environment. We are well-prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs”, commented Giorgio Armani, Chairman and CEO of the Armani Group.
Giorgio Armani Spring Summer 2024
