The Italian fashion group, Armani, has seen record sales of around €2.19bn during the 2013 fiscal year.
This has prompted the company to maintain investment to expand its chain. Its sales are up 4.5% on the previous year, although the previous year saw growth of 16%. Although the final figures were affected negatively by exchange rate fluctuation, growth was seen in every brand and market. If the exchange rate effect is ignored, the growth for 2013 would be at 8.3%. The China growth slowdown also had an effect.
The sales boost pushed the group to a €401million operational profit, which is up 18% to the previous year. The company invested €100million into expansion and improvement projects the previous year, which it hopes to maintain this year. Its aim is to open as many stores during this year as it did last year.
Armani has bought an additional 50% of A/X Armani Exchange to compete with the likes of Zara and H&M. A/X currently has around 270 global stores.
The brand is often criticized for its focus on the middle market, which could cause degradation of the image as a luxury brand, while Gucci and Louis Vuitton have moved towards wealthier customers.
22 MAY 2014, Italy