Financial year 2004 results: + 6.5% increase in consolidated net revenues at constant exchange rates to Euro 1,299 million (+ 3.5% at current exchange rates); EBITDA at Euro 238 million; Net Profit at Euro 126 million; Operating Profit Margin at 18.3%; Net Positive Financial Position at Euro 397 million; Investments at Euro 50 million; 46 new store openings in the year 2004
Results at 31 March 2005 (1st quarter 2005): direct worldwide retail sales up + 16% with Greater China sales up + 52%; wholesale sales of shoes and leather goods up + 35%; Armani Casa home furnishings up + 22%
Giorgio Armani S.p.A. announces its financial results for the year ended December 31, 2004, which show that the company continues its steady growth path:
– Consolidated revenues rose to Euro 1,299 million, a + 6.5% increase at constant exchange rates (+ 3.5% at current exchange rates) compared with 2003
– EBITDA in 2004 reached Euro 238 million representing an Gross Operating Profit of 18.3%. The slight reduction in profits compared with 2003 can be attributed both to an increase of Euro 8 million in the Group's advertising expenditures, principally directed towards the company's expanding accessories and home furnishings categories, and the ongoing upgrading of the worldwide distribution of the Giorgio Armani and Emporio Armani Eyewear collections
– Net profit for 2004 reached Euro 126 million, a small decline in respect to the Euro 133 achieved in 2003
– The company's net financial position remains notably strong with a positive balance of Euro 397 million at the year end following strategic investments of Euro 50 million, of which Euro 35 million was dedicated to the opening of 16 new direct company-owned stores and the renovation of 20 existing stores. With consolidated wholesale revenues rising to Euro 1,671 million in 2004, the value of worldwide annual retail sales for all products sold under the Armani name is now more than Euro 4 billion.
Results 31 March 2005 (1st Quarter)
Initial sales results for the first quarter of 2005 indicate a strong start to the year with direct-controlled stores worldwide retail sales showing a +16% increase on 2004 (Greater China +52%; Japan +15%; EU +10%; USA +3%), which by brand shows Giorgio Armani up +5%, Armani Collezioni +12% and Emporio Armani +18%. Autumn / Winter 2005 wholesale orders for the Armani Group's principal diffusion lines and products also indicate significant growth compared with the same season in 2004, with Armani Collezioni + 8%, AJ Armani Jeans + 6%, Armani Junior +19%, Accessories (shoes and bags) + 22%, Emporio Armani Watches and Jewellery +24% and Armani Casa +17%.
Giorgio Armani, Chairman and Chief Executive of Giorgio Armani S.p.A. said:
"Over the last four years we have learnt to manage the business in trading conditions that have never been straightforward. Whether it has been the decline in the US dollar, the absence of tourism, or the inconsistency of the leading world economies, we are constantly tested. Against this backdrop, I am pleased to be able to report another set of healthy figures for the Armani Group in 2004 showing steady growth, proving once again that the Armani brand is as vibrant as ever throughout the world and that our ongoing mission to create a diversified fashion and lifestyle group under the Armani name continues to be successful in today's competitive marketplace.
I am especially pleased to note the very real growth we are now seeing in both our accessories and home furnishings businesses. We have invested significantly in these two areas over the last five years and it is now evident that this strategic focus is delivering results, which will become an increasingly important engine for growth in the years ahead. It is well known that for most of our competitors, accessories represent the majority of their revenues clearly underlining the opportunity that exists for the Armani Group now that we are fully structured to compete effectively in this area.
The Armani Casa collection was launched in October 2000 with the opening of the first dedicated store on Via Manzoni in Milan. Since that time we have pursued an aggressive expansion programme for Armani Casa through the roll out of a further 20 freestanding stores in the most important cities around the world, along with the opening of 40 shop-in-shops in specialist home furnishings multi-brand stores and select department stores. By the end of 2005, we expect to have opened a further five direct stores and an additional 50 shop-in-shops, which will give Armani Casa unprecedented distribution and visibility in 35 countries.
Turning to the current year 2005, the initial indications are strongly positive with first quarter wholesale and retail sales showing double digit growth in the majority of our product categories and geographical regions indicating that the Armani Group is once again on track for another year of increased growth."