Immediate initiatives for 2002: agreement to acquire the knitwear business Miss Deanna S.p.A.; launch of Emporio Armani Jewellery collection; expansion of Armani Casa distribution; further expansion of exclusive retail network; launch of a new Giorgio Armani prestige men's fragrance
14 January, 2002, MILAN – The Armani Group today announced preliminary results for the fiscal year 2001, which show another year of strong growth across all geographic regions and product categories, with consolidated net revenues growing by 23% to Euro 1,270 million. Following this record performance in 2001, the Armani Group has registered a compounded annual growth rate of 18% over the last three fiscal years. In the year 2001 the company continued with its overall strategy to become a vertically integrated fashion and lifestyle products group through a record investment programme of Euro 273 million, including the complete acquisition of apparel manufacturer SIMINT (now de-listed from the Milan stock exchange according to the Group's strategy); the establishment of a new joint venture company, Borgo 21, for the further development of the Giorgio Armani top line; the expansion of its exclusive retail network with 33 new stores in key cities around the world; and, the opening of its new worldwide sales headquarters and Armani Teatro in Milan.
HIGHLIGHTS
ARMANI GROUP
Year 2001 consolidated net revenues up 23% from Euro 1,034 million to Euro 1,270 million
Compounded annual growth rate of 18% in consolidated net revenues over last three fiscal years
Year 2001 consolidated net revenues growth by region: Europe +13%, North America +35%, Asia/Pacific and other regions +29%
Consolidated net revenues by geographic region: Europe 45%, North America 28%, Asia/Pacific and other regions 27%
Strategic investment programme continues at record level of Euro 273 million
RETAIL DIVISION
Year 2001 retail revenues up 9% from Euro 440 million to Euro 481 million
Year 2001 retail sales growth by region: Europe + 16 %, Asia/Pacific + 15 %, North America + 1 % despite the current general economic slowdown in the United States
Retail investment programme continued with 33 new store openings and 20 existing store renovations in strategically important cities around the world comprising: 5 Giorgio Armani boutiques (including San Paolo and Moscow), 2 Armani Collezioni stores, 11 Emporio Armani stores, 2 A|J Armani Jeans stores, 6 A/X Armani Exchange stores, 2 Armani Junior stores and 5 Armani Casa stores
MANUFACTURING DIVISION
Successfully completed acquisition of apparel manufacturer SIMINT (now de-listed from Milan stock exchange according to the Group's strategy)
Established joint venture company, Borgo 21, for the further expansion of the top line Giorgio Armani apparel collection
Continued development of Armani Collezioni business through joint venture company, Trimil
INVESTMENTS
Strategic investment programme for 2001 continues at record level of Euro 273 million
– Euro 134 million to complete acquisition of apparel manufacturer SIMINT, as mentioned above
– Euro 78 million on retail expansion and renovation programme
– Euro 61 million on other investments, including establishment of Borgo 21 and the opening of the Group's new worldwide sales headquarters and Armani Teatro in Milan (via Bergognone 59)
OTHER PRODUCT LINES
Armani Casa established a worldwide presence through the opening of five dedicated stores
Emporio Armani Watches achieved record growth of 18 % in worldwide retail sales
The Giorgio Armani Parfums division achieved further strong growth in 2001 with sales in Europe registering a 19% increase on 2000, following the successful introduction of the Emporio Armani White fragrances and the continued steady growth of Acqua di Gio pour Homme. In the United States, Acqua di Gio pour Homme has reinforced its position as the No. 1 fragrance in the men's fragrance market. Acqua di Gio pour Homme is now the leading men's fragrance worldwide
Giorgio Armani, President and Chief Executive of the Armani Group, said: �I am pleased to report that the Armani Group has achieved another record year in 2001 despite the generally more adverse global economic climate. This performance underlines the success of our ongoing strategy to transform the company into a vertically integrated design, manufacturing, distribution and retail fashion and lifestyle products group that is able to fully capitalise on the enormous strength of the Armani brand throughout the world. Through our wise financial management we plan to continue with our significant strategic investment programme in the year to come focusing on the further enhancement of our exclusive retail network, the acquisition of further relevant Italian-based manufacturing capacity and the extension and diversification of our range of product lines. The various immediate initiatives we are announcing today for 2002 provides evidence of our commitment to this growth strategy.�
(Note to Editors: Final results for Year 2001 will be announced in April, 2002)