Armani rebounds from pandemic, sales increase 34% in first half Reuters

Milan (Reuters)-Giorgio Armani’s sales increased by 34% in the first half of 2021, thanks to operations in China and the United States that helped the Italian fashion group rebound, although it said it may not be out of the pandemic until next year full recovery.

“The goal is to return to pre-pandemic levels by 2022, with direct comprehensive income exceeding 2 billion euros,” Chairman and CEO Giorgio Armani announced on Sunday the 2020 results and January-June trends Said in the statement.

The luxury goods group said that last year’s consolidated net sales fell by 25% to 1.6 billion euros ($1.9 billion), with most of the decline occurring in the first half of 2020.

As the pandemic forced stores to close and almost stagnated international tourism, global luxury goods sales fell sharply for the first time in years last year.

Giuseppe Marzocchi, Armani’s deputy general manager, said: “The decline in revenue in 2020 should not only be seen as a consequence of the pandemic… but also in line with Giorgio Armani’s own strategy of’less is more’.”

The Milan-based group did not give total sales from January to June, but said the positive sales trends so far this year indicate much better profitability in 2021.

For the full year of last year, the group’s consolidated net profit was 90 million euros, but its operating loss (EBIT) was 29 million euros.

It also stated on Sunday that its financial position in the first half of the year has improved significantly, with net cash and cash equivalents of 1.088 billion euros, which “ensures the financial resources needed for the group’s medium and long-term stability and growth.”

Speculations about Armani’s succession plan have surfaced recently, especially after the 87-year-old designer said he could consider collaborating with another Italian company.

Sources told Reuters earlier this month that John Ercan, a descendant of the Italian Agnelli family, has explored possible cooperation as part of a plan to establish a luxury group.

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