The Armani Group today announced preliminary financial results for the first half ending June 30, 2002, which despite the current uncertain international political and economic environment show that the Group is on course for another year of solid growth with improving margins and profitability as synergies from recent acquisitions are now being realised. In the first six months of the year consolidated net revenues increased 5% from Euro 622 million to Euro 653 million, with EBITDA up 11 % to Euro 130 million from Euro 117 million and EBIT up 10 % to Euro 97 million from Euro 88 million.
Giorgio Armani, President and Chief Executive of the Armani Group, commented:
�Following the record year of growth in 2001, we have started 2002 in an extremely positive way with both revenue growth and profitability exceeding the industry average as we begin to reap the benefits of the Euro 560 million we have invested in our retail network, strategic acquisitions and infrastructure development over the last four years.
Our global retail expansion and renovation programme continues at a fast pace helping to reaffirm the image of the brand and reinforce the distribution of our diverse product lines. The highlight for the Autumn will be the opening of Armani / Chater House, a 3000 square meter retail development in Hong Kong signalling the commitment of the Armani Group to China, a market we are approaching at the most appropriate time.
On the manufacturing side, we have now completed the acquisitions of the knitwear company, Deanna S.p.A., and of the manufacturer Guardi, which controls four specialist shoe making companies best suited for the needs of Armani product lines. Production from this new manufacturing capacity commenced with the Spring / Summer 2003 collections.
The launches this year of Armani Mania and Sensi, two new prestige fragrances, will further consolidate and develop our business in this important sector. While we are also quickening the roll-out programme for our cosmetics line following its outstanding performance in those countries where it has already been launched.
I am also pleased to report that, alongside the Emporio Armani Watches line, we have launched a new Emporio Armani Jewellery collection, which will be in stores world-wide by the beginning of November, ready for the important Christmas holiday season.
These excellent results show that the Group is now stronger than ever , and that it is growing despite the challenging current business environment.�
Summary of Year 2002 Strategic Initiatives