ITALY. The Armani Group has announced record results for 2013, with increased margins and growth in revenues worldwide. Consolidated revenues grew by +4.5% (+8.3% at constant exchange rates) to €2.186 billion, despite the slowdown of the luxury industry in some key markets.
Growth was achieved in all of the group’s brands and distribution channels. Retail grew by +6.9% at current exchange rates (+14.6% at constant exchange rates), while the wholesale channel grew by +4.2% at constant exchange rates.
Armani’s retail network was further strengthened in 2013 with the opening of more than 100 free-standing stores. The turnover for retail totalled €7.754 billion.
Geographically, growth was “very satisfactory” in all markets, particularly in Europe where good performance was recorded, especially in France and the UK.
The operating margin (EBIT) amounted to €401 million, an increase of +18.2% from the previous year, and it was equal to 18.4% of net sales.
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Armani’s retail network was strengthened with the opening of more than 100 freestanding stores in 2013, including this new Emporio Armani boutique at Shenzhen Airport Terminal 3 |
Throughout 2013 the group continued to pursue its investment programme for the development of its distribution network, which reached 2,473 points of sale worldwide, as well as in other strategic projects for the group’s future, such as improving the integration and efficiency of the supply chain. Expenditures for investments totalled approximately €100 million.
At 31 December 2013, the group’s net financial position was approximately €700 million. This liquidity “provides the ability to make increasing investments in the group’s brands to further strength its competitive market position”, the company said.
The group has also recently finalised the acquisition of the remaining 50% of A/X Armani Exchange, thus ensuring the full ownership of the brand; it has 270 stores with more than 3,000 employees, and is mainly present in the US market. The objective of the acquisition is to “fully own, control and develop globally the first Italian fast fashion brand whose DNA is strongly Armani, aimed at a young audience”, the company added.
Armani Group President Giorgio Armani said: “The success of a brand lies in its ability to unite creativity and sales, and these results confirm just that, given the reception that our products have had on the market. The strong profitability and liquidity that we have available also allows us to accelerate our investments for future development. This will start with A/X, which we now own at 100%, in which we will invest this year and the next in order to obtain a consistent integration in the portfolio of brands of which the group is comprised.”
