The Armani Group today announced preliminary financial results for the year ending December 31, 2002, which show another year of growth with consolidated net revenues increasing 2.3% to Euro 1,300 million from Euro 1,271 million, giving the Group a compounded annual growth rate of 15% over the last three years. It is also projected that consolidated net profits for 2002 will have increased at least in line with the growth in revenues. During the year the Armani Group continued with its strategic investment programme committing Euro 80 million to the further enhancement of its manufacturing base, the ongoing expansion and renovation of its retail network and the continued extension and diversification of its product lines. Including 2002, the Armani Group has now directed over Euro 500 million of internally generated funds towards its programme of strategic investments over the last three years.
Giorgio Armani, President and Chief Executive of the Armani Group, said:
''In 2002 the Armani Group has once again delivered a strong performance with growth both in consolidated net revenues and profitability through judicious management and wise cost control against a challenging world economic and political backdrop. The Group's 15% compound annual growth rate over the last three years confirms it to be one of the fast growing companies within the fashion and luxury goods sector.
In 2002 the company remained focused on developing itself as a vertically integrated group with the ability to fully capitalise upon the power of the Armani brand around the world with a Euro 80 million programme of strategic investments in ongoing retail network enhancements, manufacturing acquisitions and infrastructure development.
The Group's retail investment programme continued at a fast pace with 30 new store openings in strategically important cities worldwide, including the new multi-brand 3,000 square meter Armani / Chater House flagship store in Hong Kong signalling the launch of an important retail expansion programme for China, and 16 store renovations.
On the manufacturing front, two important acquisitions were completed: Deanna S.p.A. for the production of high quality knitwear and I Guardi, which controlled four specialist shoe makers, to support the further growth of the Group's shoe business. This new manufacturing capacity began production with the Spring/Summer 2003 collections.
Product line expansion continued in 2002 with the highly successful launches of two new prestige fragrances, Armani Mania for men and Sensi for women; the launch of Emporio Armani Jewellery; the expansion of the Armani Jeans line in Japan and the United States; and, the further growth of the Armani Casa brand around the world through the opening of seven new stand alone stores in Milan, Istanbul, Zurich, Hong Kong, Moscow, Marbella and Riyadh.
In the near future the Group will also announce its new strategy for the manufacture and distribution of the Giorgio Armani and Emporio Armani eyewear collections, which will ensure the continuation of the Armani brand's leadership position in this important product category.
Even against the current backdrop of general economic and political uncertainty, I remain optimistic that the Armani Group's uniquely disciplined approach towards its long term growth and prosperity, in which there is always an emphasis on prudent cost control, will ensure that 2003 will prove to be another year of increasing revenues and profitability.''
The Armani Group is one of the leading fashion and design groups in the world today.
It designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewellery, home interiors and fragrances and cosmetics under a range of brand names: Giorgio Armani, Armani Collezioni, Mani, Emporio Armani, Armani Jeans, A/X Armani Exchange, Armani Junior and Armani Casa. The Group's exclusive retail network currently comprises: 57 Giorgio Armani boutiques, 12 Armani Collezioni stores, 115 Emporio Armani stores, 66 A/X Armani Exchange stores, 10 Armani Jeans stores, 5 Armani Junior stores, 1 Giorgio Armani Accessories store and 12 Armani Casa stores in 35 countries.
Contact: Robert Triefus
Executive Vice President, Worlwide Communications