Armani Group revenues up 34% in the first half of 2021

In 2020, the Armani Group fared through the pandemic with a 21% drop in indirect revenues compared to 2019 to €3.3 billion and a positive after-tax net profit of €90 million, with stable shareholders’ equity over €2 billion.

In 2021, the Group starts its recovery with a first-half 34% increase of consolidated revenues compared to first half 2020 at current exchange rates (+38% at constant exchange rates, and targets for the full year €4 billion in indirect turnover. Revenues of directly operated retail channels, (excluding wholesale and licenses) grew +59% in first half 2021 compared to 2020 and net cash position returned to over €1 billion

The Group’s consolidated net revenue amounted to EUR 1.6 billion, a decrease of 25% compared to financial year 2019. The decline was heavily concentrated in the first half of the year; whilst already in the second half of 2020, consolidated net revenue showed a clear recovery, despite the new waves of contagion and the intensification of the state of emergency in Europe that marked the last quarter of 2020.

In 2020, the Armani Group reported positive EBITDA of €263 million and negative EBIT of €29 million. After taking into account financial and tax components, the Group ended 2020 with a positive consolidated net result of EUR 90 million, in compliance with the IFRS accounting standards adopted for the consolidated financial statements.

The Group’s financial position also remains decidedly solid, with net cash and cash equivalents of €925 million at 31 December 2020, down ‘organically’ by 24% compared to the level at 31 December 2019. On the other hand, consolidated shareholders’ equity at the end of 2020 amounted to EUR 2,010 million, substantially in line with the figure at the end of 2019 (EUR 2,025 million).

“The drop in revenues in 2020 should be read not only as a consequence of the pandemic and the traffic and consumption crisis, which is particularly penalising for the clothing sector, but also in line with Giorgio Armani’s own strategic principle of ‘less is more’. In fact, the Group’s choice was to limit the offer of new collections, in response to the current historical moment, with merchandising in shops aligned to the seasons and reflecting the real needs of end customers. All of this by also abiding to the values of sustainability, which are more important today than ever,” commented Giuseppe Marsocci, Deputy Managing Director & Chief Commercial Officer of the Armani Group.

The Armani Group’s consolidated net revenues at 30 June 2021 showed, at current exchange rates, an overall growth of 34% compared to the first half of 2020 (i.e. +38% at constant exchange rates and +59% considering the retail calendar in directly operated channels, i.e. excluding wholesale and licenses). This growth was driven in particular by the sharp recovery in sales volumes in China and the United States since the beginning of the year, and more recently also in Europe.

The positive performance of the sales trend compared to 2020 naturally points to a much better profitability scenario for 2021, barring a return to widespread retail closures in the second half of the year due to Covid. In particular, the balance of net cash and cash equivalents improved significantly in the first half of 2021, rising to a level of €1,088 million at 30 June 2021, ensuring the financial resources necessary for the Group’s medium to long-term stability and growth.

“The recovery of the first months of 2021, with results already close to 2019 despite the pandemic not yet resolved, together with the resilience shown by the Armani Group in facing the most difficult moment of the pandemic period in 2020, makes me particularly optimistic and determined to continue my medium-long term strategic path, characterized, as always, by a great attention to quality while remaining faithful to my aesthetic philosophy. The goal is to return to pre-pandemic levels by 2022, with over €4 billion in indirect revenues (including licences) and over €2 billion in direct consolidated revenues,” commented Giorgio Armani, Chairman and CEO of the Armani Group.

Giorgio Armani