Despite uncertainty over future, Giorgio Armani remains confident and defiant
Despite growing uncertainty fuelled by the recent departure of its second highest ranking executive (John Hooks), Mr Giorgio Armani remains extremely confident and defiant, insisting all his strategic decisions are meant to reinforce stability of its group. In an interview to Italian daily Il Sole, Mr Armani confirmed his company remains in a very healthy financial state, ”sitting on a cash reserve of 600 million euros”, which will be allocated for further investments.
Questioned about the future ownership and structure of his company, Mr Armani said his company had been making important changes with an integrated team of management in place, working close to him, however, the group being no longer run by ”one king” as it used to be the case half a decade ago.
On the retail strategy of his group, Mr Armani highlighted that he intends to further invest in each line, insisting that this division by lines with different target segmentation has been at the core of his success. The Armani Group has allocated over 90 million euros for the opening of 81 new stores in 2011 alone. The company EBITDA revenue has grown 20,3% compared to the same period last year and the company net cash reserves reached 604 million euros in 2011, a record figure for the company, markig a 35% increase from last year. Total revenues in 2010 for all 1792 sales points worldwide have grown by 4,6% reaching while for the directly operated stores, revenues have grown by 10,4%.