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Armani revenues up 20% in H1 after 2021 recovery
Global Banking & Finance Review®
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MILAN (Reuters) – Italian luxury goods group Armani posted a 20% increase in sales at constant currencies in the first half, after swinging to an operating profit in 2021 as revenues returned above pre-pandemic levels in the second part of the year.
MILAN (Reuters) – Italian luxury goods group Armani posted a 20% increase in sales at constant currencies in the first half, after swinging to an operating profit in 2021 as revenues returned above pre-pandemic levels in the second part of the year.
Revenues “now constantly exceed the levels achieved in 2019, thus setting the stage for a substantial improvement in operating profitability — subject to certain potential risks,” the group said in a note citing a possible economic recession caused by the Ukraine war, new COVID-19 waves and restrictive monetary policies to fight inflation.
Armani said consolidated net revenue last year totalled 2.02 billion euros ($2.1 billion), up 26.3% from 2020. Sales at directly-operated shops, which account for more than half the total, grew by 37% over 2020.
The Milan-based group posted earnings before interest and tax (EBIT) of 171.2 million euros, versus an operating loss of 29.5 million euros in 2020.
“The remarkable growth achieved in 2021, consolidated by the positive performance in the first half of this year, makes me cautiously optimistic,” said Giorgio Armani, chairman and CEO of the group.
($1 = 0.9775 euros)
(Reporting by Valentina Za, Editing by Louise Heavens)
Operating profit is the income a company makes from its core business operations, excluding any income derived from non-operational activities such as investments or sales of assets.
Consolidated net revenue refers to the total revenue of a company after accounting for all its subsidiaries, reflecting the overall financial performance of the entire corporate group.
EBIT stands for Earnings Before Interest and Taxes. It is a measure of a firm's profitability that excludes interest and income tax expenses, providing insight into operational efficiency.
A recession is a significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, income, employment, manufacturing, and retail sales.
Constant currencies refer to a method of measuring financial performance that eliminates the effects of currency fluctuations, allowing for a more accurate comparison of financial results over time.
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