Armani 2015 revenues increase 3.7%
Italian fashion house Giorgio Armani posted much slower growth in 2015 than the previous year, with revenue rising 3.7 percent to 2.64 billion euros ($2.9 billion) as Europe stagnated and expansion slowed in China.
Weaker consumer spending in China, where stellar economic growth is easing, a recession in Russia amid plummeting oil prices and global security threats hurting tourism have put a brake on growth for the luxury sector.
Armani was no exception: last year’s revenue growth was about a quarter of the 16 percent rise in sales the company reported for 2014.
Armani’s revenue places it behind Hong-Kong listed Prada as Italy’s second biggest luxury goods company, with a brand that spans furniture to cosmetics to perfumes.
Speaking to reporters after showcasing the Autumn/Winter 2016 menswear collection of his youth-focused Emporio Armani line, 81-year-old Armani said Europe had performed in 2015 in line with 2014 while sales growth in China had weakened.
Sales rose in the United States, Japan and the Middle East. Profit margins were stable, he said without adding further details. Full 2015 results will be released in the spring.
Armani reported 2014 earnings before interest, tax, depreciation and amortisation (EBITDA) of 207 million euros, or 20 percent of sales.