Giorgio Armani touted careful brand diversification and “a clear industrial strategy” as leverages that helped the group achieve growing profitability and revenues in 2014. Gains in all markets, led by Asia and the Middle East, contributed to the solid performance of the Milan-based firm.
In the year ended Dec. 31, the Giorgio Armani Group saw earnings before interest, taxes, depreciation and amortization rise 5.7 percent to 507 million euros, or $674.3 million, from 479.8 million euros, or $633.3 million, in 2013.
Armani does not reveal net profits until later in the year, when the company publishes its annual report.
Last year, revenues were up 16 percent to 2.53 billion euros, or $3.36 billion, compared with 2.18 billion euros, or $2.87 billion, in 2013.
Dollar figures were converted at average exchange rates for the periods to which they refer.
“The excellent results achieved in 2014 prove once again the ability of my group to confirm itself as a leader in the sector and a real point of reference globally,” said the designer, who is also chairman of the company. “These results are the fruit of an attentive strategy of brand diversification, where each has demonstrated it is perfectly able to best express its potential on dedicated customer targets, and have been achieved thanks to an industrial strategy that is clear, balanced, aimed at crating healthy and long-lasting value and, not least, thanks to the important support of our partners.”
The group’s brands include Giorgio Armani Privé, Giorgio Armani, Emporio Armani, Armani Collezioni, AJ Armani Jeans, Armani Junior and Armani Casa, in addition to A|X Armani Exchange. In particular, the group noted a 20 percent increase at its Casa division and a 30 percent uptick with its Privé couture line.
Last year, the group released details about the new luxury residential units for its latest project, Century Spire, in a partnership with real estate developer Century Properties. The Makati, Philippines-based, Armani-designed residences, common areas and amenities within the Century Spire 60-floor building, marked by a peak that seems to open up into a blossom and conceived by Studio Daniel Libeskind, are expected to be completed at the end of 2018.
Last year, the company also announced a partnership with Dezer Development and The Related Group to create luxurious high-end residential units, common areas and amenities as part of a new Armani/Casa Residences project in Miami. The 60-story oceanfront tower in Sunny Isles Beach, north of Bal Harbour, with 260 luxury residences, is designed by architect César Pelli.
As of Dec. 31, Armani liquidity totaled more than 500 million euros, or $665 million.
The cash-rich company has been making investments such as the acquisition last year of the remaining 50 percent in A/X Armani Exchange that it did not already own from the Como Holdings Inc. venture called Presidio Holdings Ltd., with plans to develop the label as “the first global Italian fast-fashion brand.”
Earlier this year, the designer said he was investing 50 million euros, or $66.5 million, in the Silos project — the designer’s new exhibition space and museum displaying around 600 of his signature looks located in a former Nestlé factory, and new offices in Milan. Armani, who has been named special ambassador of Expo Milano 2015, unveiled the Silos in April on the eve of the opening of Expo, with a runway show of Privé looks and a party drawing the likes of Cate Blanchett, Glenn Close, Tina Turner and Leonardo di Caprio. Silos also marks the celebrations of the group’s 40th anniversary this year. The designer’s autobiography is due to be published by Rizzoli in September and to be presented during Milan Fashion Week.
Last year, the group agreed to pay a total of 270 million euros, or $359.1 million, to Italy’s internal revenue service, the Agenzia delle Entrate, following investigations initiated in 2013 and concerning a number of companies controlled by the Armani group in the 2002-2009 period, and settling an income tax dispute.
The Armani group counts 10,500 employees, 12 production plants and more than 2,704 boutiques in 60 countries around the world.