The Italian luxury goods group Giorgio Armani once saved itself by acquiring the ownership of its secondary brands, testing O2O waters, and investing in cross-border real estate, but it was still unable to grow against the trend in the overall sluggish luxury market. According to the latest results released by the group, Armani Group’s annual revenue has dropped significantly and profit growth has almost stagnated.
Last year, Giorgio Armani Group’s revenue was 2.65 billion euros. Its revenue was second only to Prada Group and it was the second largest luxury goods group in Italy. However, last year the group’s revenue growth dropped from 16% in 2014 to 4.5%. Core profit EBITDA was 513 million euros, a slight increase of 1.2% compared with 2014, which was smaller than the 5.7% increase in the previous year. The EBITDA profit margin fell by 60%. basis points to 19.4%.
The recession in Greater China and stagnant growth in the European market have once again become the “culprits” for the decline in performance. Although the group stated that excluding the impact of mergers and acquisitions and other activities, all its brands and all regional markets have achieved organic growth in the past year, the group founder Emporio Armani revealed after the 2016 Autumn and Winter Milan Men’s Fashion Week that only the United States, Japan, and the Middle East achieved growth last year. , while the European region was basically flat in 2014, and the Greater China region shrank. Armani’s full-year revenue dropped sharply and profit growth almost stagnated
