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 emphasised.
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 totalled €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.'
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