Giorgio Armani saw its sales improve by 34 percent in the first half of 2021, with business in China and the U.S. helping the company recover from its pandemic losses.
The Italian luxury brand saw its net sales decline by 25 percent last year to $1.6 billion, down from $1.9 billion, with initial lockdowns and other challenges in the early pandemic days causing the most loss.
Last year, the company’s consolidated net profit stood at $105.9 million, while operating losses reached $34.1 million.
“The drop in revenues in 2020 should be read not only as a consequence of the pandemic… but also in line with Giorgio Armani’s own strategic principle of ‘less is more,'” Armani’s Deputy Managing Director Giuseppe Marsocci said.
While the company does not expect sales to fully recover until next year, it remains bullish on its future growth prospects as positive sales trends between January and June 2021 are indicative of profitability in the remaining two quarters this year.
Total net cash and cash equivalents in the company’s reserves reached $1.2 billion, “ensuring the financial resources necessary for the Group’s medium to long-term stability and growth.”
“The goal is to return to pre-pandemic levels by 2022, with… over €2 billion ($2.3 billion) in direct consolidated revenues,” Chairman and CEO Giorgio Armani said.
According to Reuters, the company’s succession plans have come to the fore as Giorgio Armani’s 87-year-old namesake designer recently indicated that he could consider teaming up with another Italian fashion house.