The Armani Group today announced its financial results for the full year ended December 31, 2001, which show a year of record growth with consolidated net revenues up 23%, record investment at Euro 307 million, a record 33 new store openings and a 4% increase in Earnings Before Tax, Depreciation and Amortisation (EBITDA) to Euro 246 million. As a result of the Group’s continuing programme of strategic acquisitions, depreciation and amortisation charges rose in the year by 67% to Euro 72 million with consolidated net profit at Euro 110 million.
Giorgio Armani, President and Chief Executive Officer of the Armani Group, said:
“This was a milestone year for the Armani Group with record growth, record investment, a record number of new store openings and the completion of a series of important strategic initiatives, despite the economic slowdown in the United States . This performance confirms the Armani Group to be one of the world’s fastest growing fashion companies underlining the success of our chosen business expansion strategy and the value we bring to the marketplace with our diverse range of fashion and lifestyle products.
During the last three years, we have invested over Euro 524 million using internally generated funds to expand our own retail network and to enhance our manufacturing capacities and know-how through a series of important strategic acquisitions. Today we are also announcing a new joint venture initiative to acquire specialist shoe manufacturing capacity, which together with the agreement to acquire the specialist knitwear manufacturer Deanna S.p.A, announced in January, demonstrates the Group’s continuing commitment to becoming a fully integrated fashion and lifestyle products company with all aspects of design, manufacturing, distribution and retail under direct control.
In 2002 we are continuing with our strategic investment programme, with a sustained emphasis on the further enhancement of our own retail network and the growth and diversification of our existing range of product lines, as we fully capitalise on the power of the Armani brand around the world.
Based on the evidence of the first quarter of 2002 I am cautiously optimistic about prospects for the current year. Our strategic priority is to expand our retail presence and maximise the Group’s profitability by leveraging the vertically integrated infrastructure we have been putting in place in recent years and by a wise cost control programme.”