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Giorgio Armani Group 2022 Sales, Profitability on Upward Trajectory

The Giorgio Armani store after a major remodel on Rodeo Drive in Beverly Hills photographed on March 19, 2022 in Beverly Hills, California
The Giorgio Armani store after a major remodel on Rodeo Drive in Beverly Hills photographed on March 19, 2022 in Beverly Hills, California
Michael Buckner for WWD

MILAN – The Giorgio Armani Group closed 2022 on an upward trajectory, and business momentum continued in the first quarter. The designer touted the consistency of his strategies and his pride in the independence of the company, steadfastly protected over the years.

In the 12 months ended Dec. 31, revenues rose 16.5 percent to 2.35 billion euros compared with 2.02 billion euros in 2021.

Sales including licenses exceeded 4.5 billion euros, while retail sales turnover is estimated to exceed 6.5 billion euros.

The first quarter trends for 2023 show net revenues increasing year-on-year by 18 percent over the same period 2022, confirming the balanced growth across channels and the increase in operating profitability.

“The medium-long term strategic path I have chosen to undertake continues to prove effective as is evidenced in the results: 2022 ended with further growth that has continued into the first quarter of 2023, further solidifying the group’s soundness,” said Armani, who holds the roles of chairman, CEO and creative director of the company. “I am firmly convinced that operating with a vision aimed at continuity, following a concrete and consistent approach, centered on the values that have always underpinned my creative and managerial philosophy, is the only way to face the challenges and unforeseen events that characterize the current global scenario.

“In an increasingly difficult and competitive context, I am proud to have been able to maintain my independence and the stability of the group, also thanks to the work and commitment of my collaborators and employees,” he added.

Consistent with its medium- to long-term strategy, the Armani Group has chosen to increase the amount of resources dedicated to communication initiatives. They were up 22 percent compared to 2021, as were capital expenditures, particularly in digital and IT infrastructure, as well as in the renovation and redevelopment of stores, up 25 percent over 2021.

In 2022, pre-tax net profits amounted to 218 million euros, up 16.4 percent compared with 187.3 million euros in 2021. Compared to 2019, they rose 24.5 percent.

Full-price sales growth contributed to the solid performance and an increase in margins, boosted by increased attention to service and quality and a positive response to the collections, the company said in a statement Thursday.

Earnings before interest, taxes, depreciation and amortization, ex international financial reporting standard IFRS 16, climbed 25 percent to 289 million euros. Operating profit increased 30 percent to 202.5 million euros, compared with 171.2 million euros in 2021.

With tourism resuming progressively and COVID-19 restrictions easing, sales increased 24 percent in Europe and 19.5 percent in America.

Asia, on the other hand, still reflected the extensive lockdowns in China, only lifted in early 2023, and recorded a decline of 6.3 percent.

In the first quarter, the geographic trends showed significant shifts compared to 2022, becoming more balanced. Asia has been recovering, reporting a 14 percent growth, while sales in Europe climbed 22 percent. Revenues in America were up 10 percent, and the expected slowdown in the region in the coming months will be “hopefully offset by the positive trend in Asia.”

In 2022, retail sales rose 17 percent, the wholesale channel was up 16 percent and e-commerce was up 9 percent, “and often trending higher compared to the industry benchmarks, especially for the apparel category,” the company noted.

In a joint comment, Giuseppe Marsocci, deputy general manager and chief commercial officer, and Daniele Ballestrazzi, deputy general manager and chief operating and financial officer, said “the adjustment period that followed the decision to reorganize the company’s portfolio by focusing on its three main brands, namely Giorgio Armani, Emporio Armani, and Armani Exchange may be considered concluded on a positive note with highly satisfactory sales levels, corroborated by even better growth trends in operating profitability.”

In 2017, the designer decided to streamline his portfolio of brands, effective with the spring 2018 season. That meant that the Armani Collezioni and Armani Jeans brands were integrated and merged into the Emporio Armani and A|X Armani Exchange lines, respectively. The goal was to strengthen the individual brands and maximize their potential in an increasingly competitive and changing market.

As reported, Armani has also been vocal about choosing to limit the offer of new collections, responding to the current moment, aligning collections in stores to the seasons.

“We are advancing, well ahead of schedule, towards the objectives set for 2025, the year that marks the 50th anniversary of Giorgio Armani,” concluded Marsocci and Ballestrazzi.

As reported, the goal Armani set in 2021 was to return to pre-pandemic levels by 2022, with more than 4 billion euros in revenues that include licenses and more than 2 billion euros in directly consolidated revenues.

The Armani/Casa business has also been growing consistently.

Last year, it was revealed that an Armani Hotel will rise in Diriyah, a 300-year-old site located a 15-minute drive from Riyadh, in the Kingdom of Saudi Arabia, which is expected to be completed in 2026. The area is home to the UNESCO world heritage site At-Turaif, recognized as one of the world’s foremost mud-brick cities and the valley and lush palm groves of Wadi Hanifah. This will be the third Armani Hotel in the world, following Dubai and Milan.

In his first design project of a commercial boat, last February he presented the 236-foot Admiral motor yacht designed with The Italian Sea Group, which will be delivered in early 2024 — and which already has a buyer. The yacht is the first of two.

Most recently, the 260 Residences by Armani/Casa in Miami, Florida, in a 60-story oceanfront tower designed by architect César Pelli in Sunny Isles have been completed and have sold out.

Armani is also redeveloping his four-level, 16,000-square-foot Madison Avenue store in Manhattan into a 96,000-square-foot building that will house a flagship and 19 luxury Armani/Casa residences, a project to be completed in 2025.

As reported, Armani is reprising his One Night Only events, planning to stage a fashion show in Venice, coinciding with the 80th edition of the International Film Festival there. An Armani Privé couture show will be held on Sept. 2 at the Arsenale, a storied complex of former shipyards and armories, followed by an evening party. The designer’s couture show will be paraded regularly in Paris in July.

This story was reported by WWD and originally appeared on WWD.com.

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Giorgio Armani Group Reports Strong 2022 and Q1
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