Giorgio Armani slows in FY2024 with 6% revenue decline
'In an international macroeconomic and geopolitical scenario marked by persistent tensions and high uncertainty, and despite the specific slowdown in the fashion and luxury sector, in 2024 the Armani Group also achieved solid and positive economic and financial results at the consolidated level, albeit down from the previous year,' the Italian company emphasized.
The Armani Group reported record investments for the fiscal year, all fully self-funded, reaching €332 million—twice the amount spent in 2023 (€168.5 million) and nearly triple the typical annual investment in previous years. These funds went toward renovating key flagship stores, including the Madison Avenue location in New York, Emporio Armani Milano, Palazzo Armani, and the brand's new headquarters on Rue François 1er in Paris. The company also brought e-commerce operations in-house.
Geographically, Europe again generated 49% of consolidated net revenues in 2024, maintaining its share from the previous year. The Americas accounted for 22%, while Asia-Pacific fell to around 19%, slightly down from 2023, primarily due to the slowdown in the Chinese market.
Post-IFRS16 EBITDA totaled €398 million in 2024, marking a 24% decline from the previous year (€523 million). EBIT and net income before taxes (EBT) amounted to €67 million and €74.5 million, respectively—consistent with the EBITDA trend and reflective of the impact from numerous extraordinary investments made.
The result reflects a mid-single-digit revenue decline alongside a slight 2.5% increase in operating expenses. The Armani Group's net cash and cash equivalents stood at €569.7 million at the end of 2024, compared to €945.6 million at the end of 2023.
'During 2024, although I was well aware of the market slowdown already felt in the second half of 2023 and the many critical issues arising from the international context, I continued to operate with an eye to the future,' Giorgio Armani, Chairman and CEO of the Armani Group, said in the statement. 'It is with this in mind that I have chosen in each case to invest in projects of great importance, both symbolic and concrete, which are fundamental for the company's tomorrow. In any case, 2024 closed with positive results, the result of sound and prudent management, further confirming the Group's solidity.'
'We opted for restrained pricing policies with increases below the rate of inflation and for a distribution oriented to quality rather than quantity, as shown by the stability of the number of points of sale, therefore without forcing and with selective criteria,' added Giuseppe Marsocci, Deputy Managing Director & Chief Commercial Officer of the Armani Group. 'Ultimately, the decision was to focus on product quality and customer experience, even at the cost of sacrificing margins in the short term, in the belief that this choice will make us more competitive when the market returns to growth.'
'I am convinced that pursuing consistency and continuity, avoiding chasing immediate gains, is the best strategy to ensure success in the long run,' added Giorgio Armani, who is back from a convalescence after hospitalization at the end of June, which did not allow him—for the first time in 50 years—to attend in person the fashion shows of his two menswear lines in Milan, Giorgio Armani and Emporio Armani. 'It is precisely thanks to this approach, in an increasingly complex and competitive global context, that I can proudly say that I have maintained the Group's independence and stability.'
(Exchange rate: €1 = $1.18)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
2 hours ago
- Euronews
Millionaires on the move: Italy to attract 3,600 billionaires in 2025
More than 142,000 millionaires worldwide will relocate in 2025, according to research by Henley & Partners, a company specialising in consultancy for citizenship and residency programmes. Around 3,600 of them will choose Italy, ranking behind only the United Arab Emirates (9,800) and the United States (7,500), but ahead of Switzerland (3,000). The decision is driven by geopolitical tensions and increasing global tax competition, with the number of high-net-worth individuals ready to relocate having more than doubled in the past decade. The CR7 flat tax: A key to fiscal attractiveness Since 2017, Italy has been applying a special tax regime known as the 'CR7 rule' (an acronym coined after footballer Cristiano Ronaldo), which allows non-domiciled residents to pay a fixed annual tax of €200,000 on income generated abroad, for a period of 15 years. For family members opting for the same regime, the flat tax drops to €25,000. The regime applies to income from financial investments, image rights, capital gains and foreign inheritances, while income produced in Italy is taxed ordinarily. Milan, a new hub for international high finance The recent abolition of the tax regime for 'non-doms' in the United Kingdom, individuals resident but not domiciled, has prompted many international millionaires and managers to move to Italy, particularly Milan. Names such as Elio Leoni-Sceti, Bart Becht, Richard Gnodde and Nassef Sawiris have chosen Milan for its tax advantages, quality of life and quick access to European markets. In addition to the favourable tax conditions, Milan is experiencing a growth in luxury services, with new exclusive clubs, high-end hotels such as Rocco Forte and Rosewood, and an expansion of international law firms. Italian financial wealth: $7 trillion and growth prospects According to the 2025 Global Wealth Report by Boston Consulting Group (BCG), Italy ranks eighth in the world for investable financial wealth, with a total wealth of approximately $6.9 trillion in 2024, slightly down 1.1% compared to the previous year due to a less favourable market environment. Of this wealth, 40% is invested in equities and mutual funds, 25% in deposits and currencies, 18% in life insurance policies and pensions, and 8% in bonds. BCG predicts an average annual growth of 6.5% until 2029, with financial assets potentially reaching $9.455 trillion. Millionaires and the super-rich in Italy: taxation and quality of life Italy is home to about 517,000 millionaires (with assets over one million dollars) and 2,600 super-rich with assets over one hundred million dollars. The number of millionaires is expected to grow by 1% annually over the next four years, while the ultra-rich segment will grow by 3%. Supporters of the tax regime believe that the arrival of millionaires encourages consumption, investment and the creation of new businesses, contributing to tax revenue and economic development. Sceptics, on the other hand, warn of the risks of downward tax competition and the inflationary impact on the real estate market and services, especially since many super-wealthy citizens choose Italy to enjoy their retirement. Beyond tax advantages, Italy is attractive for its Mediterranean climate, cuisine, proximity to the sea and mountains, and a lower cost of living compared to London or Monaco. These factors, together with excellence in luxury services and a growing financial and legal network, make the country a popular destination for high-net-worth individuals seeking stability and a good quality of life. Other destinations for millionaires Besides Italy, other cities are attracting millionaires thanks to favourable tax regimes and high standards of living. Dubai, for example, offers zero taxation and a dynamic capital market. However, some cities, such as London, have seen a flight of millionaires due to high taxes and political uncertainties. According to Henley & Partners' report, London has lost about 30,000 millionaires in the last decade.
France 24
7 hours ago
- France 24
Japan plans 'world first' deep-sea mineral extraction
Earlier this week the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China's dominance in resources vital to new technologies. Rare earths -- 17 metals difficult to extract from the Earth's crust -- are used in everything from electric vehicles to hard drives, wind turbines and missiles. China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency. A Japanese deep-sea scientific drilling boat called the Chikyu will from January conduct a "test cruise" to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan's Cross-ministerial Strategic Innovation Promotion Programme. "The test to retrieve the sediments from 5,500 metres (3.4 miles) water depth is the first in the world," he told AFP. "Our goal... of this cruise is to test the function of all mining equipment," so the amount of sediment extracted "doesn't matter at all", Ishii added. The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific -- the easternmost point of Japan, also used as a military base. Japan's Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks. Each tonne is expected to contain around two kilograms (4.4 pounds) of rare earth minerals, which are often used to make magnets that are essential in modern electronics. Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters. Beijing has since April required licences to export rare earths from China, a move seen as retaliation for US curbs on the import of Chinese goods. Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor. The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting later this month to discuss a global code to regulate mining in the ocean depths.
France 24
11 hours ago
- France 24
US-Vietnam trade deal sows new China uncertainty
The Southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president's "Liberation Day" tariff blitz on April 2. The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords. The 46 percent rate due to take effect next week has been averted, with Vietnam set to face a minimum 20 percent tariff in return for opening its market to US products including cars. But a 40 percent tariff will hit goods passing through the country to circumvent steeper trade barriers -- a practice called "transshipping". Washington has accused Hanoi of relabelling Chinese goods to skirt its tariffs, but raw materials from the world's number two economy are the lifeblood of Vietnam's manufacturing industries. "From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China," said Capital Economics. It said the terms on transshipment "will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over coming days". 'The looming question' Shares in clothing companies and sport equipment manufacturers -- which have a large footprint in Vietnam -- rose on news of the deal in New York. But they later declined sharply as details were released. "This is a much better outcome than a flat 46 percent tariff, but I wouldn't celebrate just yet," said Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates. "Everything now depends on how the US decides to interpret and enforce the idea of transshipment," he added. "If the US takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules." Vietnam's government said in a statement late on Wednesday that under the deal the country had promised "preferential market access for US goods, including large-engine cars". But the statement gave scant detail about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the United States in the medium term, endangering more than two percent of its gross domestic product as a result of the agreement. Uncertainty over how transshipping will be "defined or enforced" is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi. "The looming question now is how China will respond," she said. "Beijing has made clear that it would respond to deals that came at the expense of Chinese interests." "The decision to agree to a higher tariff on goods deemed to be 'transshipped' through Vietnam may fall in that category," added Sajedi.
