Jun 1, 2016
Giorgio Armani sales growth decelerates as luxury sector slows
Jun 1, 2016
Italian fashion group Giorgio Armani reported slower revenue growth of 4.5 percent at current exchange rates for 2015 and said its core profit had remained broadly unchanged.
Revenue totaled 2.65 billion euros ($3 billion), placing Armani just behind Italy's biggest fashion group Prada which had sales of 3.55 billion euros last year.
Last year's sales increase compares with a 16 percent rise Armani reported for 2014, showing the brand is not immune from the sector slowdown driven by China's economic deceleration, security threats hurting tourism and emerging countries' woes.
Armani, whose products range from apparel to cosmetics and furniture, said earnings before interest, tax, depreciation and amortization (EBITDA) reached 513 million euros last year, compared with 507 million in 2014.
The group said its cash reserves of 640 million euros at the end of December gave it the opportunity to make increasing investments in its brands.
The company founded by Giorgio Armani in Milan in 1975 is seen as a prime candidate for a stock market listing. The 81-year-old designer, still actively involved in the business, has not yet disclosed any succession plan.
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