November 29, 2023

Armani is back from the COVID-19 pandemic with sales up 34% in the first half of 2021

Armani is back from the COVID-19 pandemic with sales up 34% in the first half of 2021

MILAN: Giorgio Armani’s sales rose 34 percent in the first half of 2021 as business in China and the United States helped the Italian fashion group rebound, although it said it could be a full step away from the pandemic recovery next year.

“The goal is to return to pre-pandemic levels by 2022…more than €2 billion in direct consolidated revenue,” Chairman and CEO Giorgio Armani said Sunday (25 July) in a statement presenting results for 2020 and “the goal is to return to pre-pandemic levels.” The 2020 trend has been announced. January and June.

The luxury company said consolidated net sales fell 25 percent last year to 1.6 billion euros (US$1.9 billion), with most of the decline occurring in the first half of 2020.

Sales of luxury goods worldwide fell sharply last year for the first time in years as the pandemic forced stores to close and international tourism almost stopped.

“The decline in sales in 2020 should be read not only as a result of the pandemic … but also in line with Giorgio Armani’s strategic principle, ‘less is more,'” said Giuseppe Marsucci, Armani’s deputy general manager.

The Milan-based company did not disclose the value of total sales for the January-June period, but said that the positive sales trend this year so far points to a much better profitability scenario for 2021.

For the year as a whole, the group generated a consolidated profit of €90 million and an operating loss (EBIT) of €29 million.

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The financial position improved significantly in the first half of the year with net liquidity of €1.088 billion, it was said on Sunday, “which will secure the Group’s financial resources for medium to long-term stability and growth”.

Speculation about Armani’s succession plans have come to the fore recently, especially after the 87-year-old designer announced that he was considering a collaboration with another Italian company.

Sources told Reuters earlier this month that John Elkann, a scion of the Italian Agnelli family, was investigating the possibility of the union as part of plans to build a luxury conglomerate.

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