Armani re-structuring sees sales fall 10 percent

In 2017 when Giorgio Armani announced it would shutter its Armani Collezioni and Armani Jeans brands as part of a new distribution strategy, the company said it was prepared to see losses.

Those losses have incremented to 10 percent year on year, as the Armani Group this week announced revenue fell to 2.109 billion euros. While in line with expectations, the company has seen some management reshuffling and appointed two new deputy general managers, Giuseppe Marsocci and Daniele Ballestrazzi, who took on the role after the departure of Livio Proli. In a press release the company said its dent in turnover is "in line with budgets and as part of a strategic path oriented to medium to long-term results of simplification/redevelopment of the brand portfolio."

But the road to consolidation is rocky, and the closure and integration of Armani’s collection brands has seen a steady decline in sales since 2016, when it had recorded a decrease of 5.2 percent to 2.511 billion. In 2017 revenues fell by 7 percent to 2.335 billion.

"I am confident that the path taken is the most correct to consolidate the leadership position of the Armani Group and its brands in the luxury/lifestyle segment," commented Gaetano Sciuto, Armani Group Chief Executive Officer in a statement. "This is confirmed by the positive signs regarding sales for the spring/summer 2019 season of this first part of the year. The important level of liquidity offers the opportunity to face increasing investments in our brands, in absolute autonomy and independence, to support the multi-year plan in place. The renewed first organizational line consisting of two deputy directors general, Giuseppe Marsocci for the commercial and markets part and Daniele Ballestrazzi for the finance and operations part, will directly contribute to the implementation of this path strategic ally.”