Italian fashion house Giorgio Armani says it is in a strong position to ride out the Covid-19 pandemic, after reporting a return to revenue growth in 2019, a year earlier than anticipated.
The company, whose brand logo can be found on everything from jeans, to shoes, eyeglasses and household furnishings - says it “has both the resources and a solid capital and financial structure that will enable it to cope with uncertainties and ensure it continues resolutely in implementing its strategic plan.”
Armani reported a net profit of €124 million for 2019, as comparable net sales revenues increased by 7 percent year-on-year to €2,158 million. Growth of the top line comes after a three-year period of a planned reduction in turnover as part of a strategy to streamline and upgrade the brand portfolio and distribution network. The fashion group is now focusing exclusively on the Giorgio Armani, Emporio Armani and A/X Armani Exchange brands.
Armani’s net cash fell to €1,215 million at end 2019, down from €1,316 million the year earlier, while net equity was steady at €2,050 million.
Brand revenues including licenses such as the eyewear licenses the company holds with Italian eyewear manufacturer Luxottica, increased by 9 percent to €4,257 million. The company did not provide a breakdown of sales either on product or geographical basis.
Armani invested €105.5 million in 2019 to continue to upgrade its brand portfolio and distribution network, in line with 2018 investments of €105.7 million.