Armani Sales Bounce Back in Pandemic Rebound

Gross sales at Giorgio Armani jumped 34 p.c within the first half of 2021 as enterprise in China and the USA helped the Italian vogue group bounce again, though it stated it could possibly be subsequent 12 months earlier than it totally recovers from the pandemic.

“The purpose is to return to pre-pandemic ranges by 2022, with … over 2 billion euros in direct consolidated revenues,” Chairman and CEO Giorgio Armani stated on Sunday in an announcement saying 2020 outcomes and the pattern for January-June.

The luxurious group stated consolidated web gross sales had fallen 25 p.c final 12 months to 1.6 billion euros ($1.9 billion), with many of the decline occurring within the first half of 2020.

Luxurious items gross sales around the globe fell sharply final 12 months for the primary time in years because the pandemic pressured store closures and introduced worldwide tourism to a digital halt.

“The drop in revenues in 2020 ought to be learn not solely as a consequence of the pandemic… but in addition consistent with Giorgio Armani’s personal strategic precept of ‘much less is extra’,” stated Armani Deputy Managing Director Giuseppe Marsocci.

The Milan-based group didn’t give the worth of complete gross sales in January-June however stated the optimistic gross sales pattern up to now this 12 months pointed to a a lot better profitability situation for 2021.

For the entire of final 12 months the group made a consolidated web revenue of 90 million euros however an working loss (EBIT) of 29 million euros.

It additionally stated on Sunday that its monetary place improved considerably within the first half with web money and money equivalents of 1.088 billion euros “making certain the monetary assets vital for the Group’s medium to long-term stability and development”.

Hypothesis about succession plans at Armani has come to the fore not too long ago, particularly after the 87-year-old designer stated he may think about teaming up with one other Italian firm.

Sources instructed Reuters earlier this month that John Elkann, scion of Italy’s Agnelli household, had explored a potential tie-up as a part of plans to construct a luxurious conglomerate. ($1 = 0.8495 euros)

By Stephen Jewkes and Claudia Cristoferi

Additional Studying: Report: Giorgio Armani Could Consider Joint Venture Partner

Armani dominated out going the way in which of many different Italian luxurious items manufacturers, together with Gucci, Fendi and Bulgari, which have been purchased by trade giants LVMH and Kering SA , saying a French purchaser was not on the playing cards.