Armani eyes sales recovery to €2bn in 2022

Photo: EPA Giorgio Armani

The popular fashion group Giorgio Armani reported a robust growth in sales by 34% in the first half of 2021 but noted that the pre-pandemic levels will hardly be reached shortly. Still the conglomerate eyes full recovery sometime in 2022, Reuters reported.

"The goal is to return to pre-pandemic levels by 2022, with over 2 billion euros in direct consolidated revenues," Chairman and CEO Giorgio Armani said in a statement announcing 2020 results and the trend for January-June 2021. The luxury group confirmed that consolidated net sales had fallen 25% last year to 1.6 billion euros, with most of the decline posted in the first half of 2020. Luxury goods sales around the world fell sharply last year for the first time in years as the pandemic forced shop closures and brought international tourism to a virtual halt.

"The drop in revenues in 2020 should be read not only as a consequence of the pandemic... but also in line with Giorgio Armani's own strategic principle of 'less is more'," said Armani Deputy Managing Director Giuseppe Marsocci. The Milan-based group did not give the value of total sales in January-June but said the positive sales trend so far this year pointed to a much better profitability scenario for 2021.

For 2020 the group made a consolidated net profit of 90 million euros but posted an operating loss of 29 million euros. It also said that its financial position improved significantly in the first half with net cash and cash equivalents of 1.088 billion euros "ensuring the financial resources necessary for the Group's medium to long-term stability and growth". Speculation about succession plans at Armani has come to the fore recently, especially after the 87-year-old designer said he could consider teaming up with another Italian company.

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