Despite its FY 23 revenues increasing by 4 per centto €2.45 billion in 2023, the Armani Group is experiencing a slowdown its Asia market, which is affecting the group’s sales this eyar.
Having experienced a single-digit slowdown in the second half of 2023 and 2024, the Armani Group attributed it to adjustments within the luxury market, particularly in the Asia ex-Japan region and the more accessible segment of their offerings. This decline was evident in H2, FY23 and continued into the H1, FY24, contrasting with an exceptionally strong H1, FY23.
The slowing of growth in China, the world's second-largest economy and a crucial market for luxury goods, has impacted sales for major fashion brands. For instance, the world's largest luxury group, LVMH recorded 14 per centdecline in net profit during H1, FY24 amidst an uncertain economic environment.
Despite these challenges, the Armani Group's pre-tax net profit rose by 4.4 per cent to €224.5 million in FY23, with adjusted profit amounting to €523 million, compared to €519 million in 2022. The company deliberately sacrificed some margin points to avoid significantly raising retail prices, despite inflationary pressures, states Giuseppe Marsocci, Deputy General Manager
Giorgio Armani, Founder, CEO, and Chairman, emphasisedon the company's preparedness to navigate a market slowdown without prioritising maximum year-on-year profit at all costs. This cautious approach aims to sustain the brand's long-term stability and reputation in the luxury market.
