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Armani sales up 18% in Q1 as Asia rebounds, U.S. faces slowdown

Published 05/25/2023, 06:20 AM
Updated 05/25/2023, 10:47 AM
© Reuters. Models present creations by designer Giorgio Armani as part of his Haute Couture Spring/Summer 2023 collection show for fashion house Giorgio Armani Prive in Paris, France, January 24, 2023. REUTERS/Sarah Meyssonnier

MILAN (Reuters) -Italy's Armani Group said on Thursday its sales jumped 18% in the first quarter thanks to a rebound in Asia and more modest growth in the United States, where a slowdown is expected in the coming months.

The privately-owned luxury group added that its 2022 full year revenues were up 16.5% to 2.35 billion euros ($2.59 billion), boosted by sales in Europe and the United States, while Asia showed a decline due to COVID related restrictions.

Retail and wholesale channels both contributed in a similar way to the revenues growth.

The Milan-based group's operating profit rose 30% in 2022, to 202.5 million euros.

The group said the good momentum of 2022 has continued into the first quarter of this year, which was boosted by a 14% sales increase in Asia.

"Europe continues its positive trend (+22%), as does - albeit more modestly - America (+10%), where the coming months are expected to bring a slowdown, hopefully to be offset by the positive trend in Asia", the group said, referring to the January-March period.

Luxury stocks in Europe fell this week amid growing concerns over a slowdown in luxury demand in the United States.

"In an increasingly difficult and competitive context, I am proud to have been able to maintain my independence and the stability of the group" Chairman and Chief Executive Giorgio Armani said.

© Reuters. Models present creations by designer Giorgio Armani as part of his Haute Couture Spring/Summer 2023 collection show for fashion house Giorgio Armani Prive in Paris, France, January 24, 2023. REUTERS/Sarah Meyssonnier

The Italian group added that the "adjustment period" that followed the decision to reorganise the company's portfolio around its three main brands, namely Giorgio Armani, Emporio Armani, and Armani Exchange, had concluded.

($1 = 0.9084 euros)

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