The Italian company, that unified its brand portfolio two years ago, earned 152 million euros (169 million dollars) last year, compared to the 242.4 million euros (270 million dollars) in 2017.
Armani suffers the consequences of its reorganization. The fashion group has closed its fiscal year with a downfall of 37.3% in its profit and a drop in sales of 9.8%. The company has stated that the consequences of both falls are due to the reorganization of its brand portfolio, according to WWD.
In 2017, the company announced a unification of its portfolio, to focus in only three brands: Giorgio Armani, Emporio Armani and Armani Exchange, an operation that became effective in spring 2018. Armani Collezioni and Armani Jeans joined Empori Armani and Armani Exchange respectively.
The company’s revenue was 2.1 billion euros (2.3 billion dollars), compared to 2.3 billion (2.6 billion dollars) euros last year, “in line with established budgets and consistent with the medium-to-long-term strategy of simplification and streamlining of the brand portfolio,” stated the company.
Armani forecasts to return to its growth in 2020
The company plans to return to its growth in 2020. The group’s benefit reduced up to 152 million euros (169 billion dollars) in 2018, compared to the 242.4 million euros (270 million dollars) in 2017.
To supports its strategic plan, the company rised 28% its investment, up to 106 million euros (118 million dollars). Armani has also rearranged its executive team with two managing directors, Guiseppe Marsocci and Daniele Ballestrazzi.