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Armani Stages Strong Bounce Back From Pandemic Hit In H1 With 34% Jump In Sale


07/26/2021


Armani Stages Strong Bounce Back From Pandemic Hit In H1 With 34% Jump In Sale
A surge in sales in China and the United States helped the Italian fashion group Giorgio Armani to report a 34 per cent jump in sales for the first half of 2021 as the company strongly bounced back from the pandemic hit to its business.
 
The brand however said that a complete recovery for the pandemic hit could take as long as next year. 
 
"The goal is to return to pre-pandemic levels by 2022, with... over 2 billion euros in direct consolidated revenues," Chairman and CEO Giorgio Armani said on Sunday in a statement while announcing 2020 results and the trend for January-June period.
 
Last year, there was a drop of 25 per cent in the consolidated net sales of the luxury group at 1.6 billion euros ($1.9 billion) with the worst dip in sales and revenues having t65aken place in the first half of 2020 when the first wave of the Covid-19 pandemic was in full force all across the world – prompting governments to t impose lockdowns and shut down stores and businesses.
 
The performance of Giorgio Armani last year was in line with the wider global luxury goods sales as the industry saw a sharp decline in sales – which is a first for the industry in years. A virtual shut down of the international tourism industry was one of the reasons for the decline.
 
"The drop in revenues in 2020 should be read not only as a consequence of the pandemic... but also in line with Giorgio Armani's own strategic principle of 'less is more'," said Armani Deputy Managing Director Giuseppe Marsocci.
 
The value of its total sales for January-June period was not spelled out by the Milan based luxury brand but said that it expected a much better profitability scenario for 2021 based on the positive sales trend that it has witnessed so far this year.
 
Despite making a consolidated net profit of 90 million euros for the whole of last year, the group also reported an operating loss (EBIT) of 29 million euros.
 
During the first half of the current year, the financial position of Giorgio Armani had improved significantly, the group also said, with its net cash and cash equivalents of 1.088 billion euros "ensuring the financial resources necessary for the Group's medium to long-term stability and growth".
 
In recent times, there have been reports on the issue of succession plans at Giorgio Armani particularly following the comment from the 87 year old designer that he could consider partnering the business with another Italian company.
 
According to reports quoting sources earlier this month,  John Elkann, scion of Italy's Agnelli family, has considered potential partnerships as parts of plans for building a luxury conglomerate.
 
(Source:www.channelnewsasia.com)


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