Armani expects to return to pre-pandemic levels by 2022. The recovery has already begun: in the first half of 2021, sales are up +34% thanks to the USA and China. In light of this result, the group expects “a much better profitability scenario for 2021”. The only variable, ça va sans dire, is the return of the pandemic with consequent lockdowns. In 2020, Armani left a quarter of its revenues in the field. But it’s not just the pandemic’s fault…
Pre-pandemic levels
Armani, always at the centre of market speculation, ended the first half of 2021 on a positive note. At constant exchange rates, sales in the January-June 2021 period grew by 38%, compared to the weak half of 2020, reaching “levels close to 2019”. The full recovery of pre-pandemic rhythms, with more than €2 billion in consolidated direct revenues out of more than €4 billion in total (including those coming from licensing), should come next year, says chairman and CEO Giorgio Armani (pictured).
Resilience
“The recovery in the first months of 2021, together with the resilience shown by the group, makes me particularly optimistic – is the founder’s comment -. I am determined to continue my medium-long term strategic path”. In 2020, consolidated turnover is €1.6 billion, -25% on 2019. Net profit is down 27.4% to €90 million. Total sales of Armani-branded products worldwide, including licensing revenue, are down 21% (€3.3 billion). The decline should not only be seen as a consequence of the pandemic, “but also in line with Giorgio Armani’s own strategic principle of less is more,” comments Giuseppe Marsocci, deputy managing director and chief commercial officer of the group, as WWD reports. Armani has chosen to limit the offer of new collections “reflecting the real needs of end customers”.
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