Armani, revenues down 5% but investments double
3' min read
3' min read
The Armani Group did not come through 2024 unaffected, a year in which both fashion and high-end saw revenues and profitability drop, but it held up better than many others.
Revenues fell by 5% to EUR 2.3bn at constant exchange rates (-6% at current rates) and profits suffered compared to 2023, although they remained positive. Ebitda fell to EUR 398 million (-24%), similar to the reduction in pre-tax net profit to EUR 74.5 million.
Doubled investments and strong liquidity
On the strength of its independence and the financial solidity built up over the years, in 2024 the group doubled its investments - entirely self-financed - compared to the previous year, raising them from 168.5 million to 332 million, almost three times the average of previous years. Last year, resources were allocated to the renovation of many of the most important flagship stores, such as the Madison Avenue building in New York, Emporio Armani in Milan and Palazzo Armani, the new headquarters in Paris, and to digital, with the complete internalisation of e-commerce management.
The group's net cash and cash equivalents were still considerable, amounting to EUR 569.7 million at the end of 2024: the difference to the figure at the end of 2023 (EUR 945.6 million) is mainly related to real estate acquisitions. No forecasts are ventured on 2025, unlike on 27 July 2024, when the figures for the financial year 2023 were published. The reason for this is clear: compared to a year ago, geopolitical and thus global economic uncertainty has increased exponentially, and it makes no sense to speculate on the trend in the second half of the year, especially not being bound by the obligations of those who are listed.
The group turns 50
2025 remains important for another reason. The company founded and still headed by Giorgio Armani is celebrating its 50th anniversary: so many years have passed since 1975, when the designer began building the group, together with his partner and life companion Sergio Galeotti, who passed away in 1985 at the age of just 40.
