Giorgio Armani Financial Results 2007

Giorgio Armani Financial Results 2007.

(PRWEB) April 12, 2008 -- Another excellent year for Giorgio Armani Group in 2007.

- significant growth across all lifestyle brands, product categories and geographic areas

Wholesale revenues - showing an increase in all product categories - demonstrate the strength of the Group's brands and the positive impact of its worldwide expansion strategy. At current exchange rates Watches and Jewellery increased by +20% (+31% at constant exchange rates), Eyewear +19% (+21% at constant exchange rates), Fragrances, cosmetics and skincare +13% (+16% at constant exchange rates), Apparel +12% (+16% at constant exchange rates).
Growth has been substantial throughout all geographic areas as well. At current exchange rates: Greater China +24% (+28% at constant exchange rates), Europe, excl. Italy, +19% (+20% at constant exchange rates), Rest of the World +18% (+19% at constant exchange rates), Italy +13% (+13% at constant exchange rates), North America +7% (+17% at constant exchange rates), Japan +4% (+14% at constant exchange rates).

Growth has also been significant for each of the Group's lifestyle brands. At current exchange rates: Armani Junior +47% (+47% at constant exchange rates), A/X Armani Exchange +25% (+38% at constant exchange rates), Emporio Armani +20% (+24% at constant exchange rates), Giorgio Armani +13% (+15% at constant exchange rates), Armani Collezioni +8% (+15% at constant exchange rates), Armani Jeans +5% (+6% at constant exchange rates).

Giorgio Armani, President and CEO of Giorgio Armani S.p.A. said:
"These financial results for 2007 reflect a company that has been consistently growing for thirty years and that has built an innovative and winning business model under the Armani brand. One can fully appreciate the vitality of the brand in the world today through this outstanding performance and most especially through the ongoing expansion in each of our five lifestyle collections and the remarkable growth seen in the more widely-diffused product categories, particularly fragrance, cosmetics and skincare, eyewear, watches and jewellery. With the Milan Furniture Fair taking place next week it is also appropriate to highlight the significant advance made by our Armani/Casa business."

Consolidated turnover for the full year 2007 amounts to 1,596.6 million Euros, equal to an increase of +8% compared to 2006 (+12% at constant exchange rates) compared to 1,474.4 million Euros in 2006.
EBITDA reached 354.9 million Euros, a +18% rise compared to 2006 and corresponding to 22% of consolidated turnover.
EBIT reached 288.5 million Euros, a +17% rise compared to 2006.
The Group's net cash was once again positive and has risen to 373 million Euros compared to 2006, evidence of the company's excellent financial soundness.

Giorgio Armani added:
"Although in 2008 there is a more uncertain economic climate I anticipate another year of growth supported by the +7% increase in our wholesale orders (9% at constant exchange rates) for the Autumn/Winter 2008 season. In the year ahead we will continue to pursue our ambitious worldwide retail network expansion programme, which last November included the opening of the Armani/Ginza Tower, our fourth Armani multi-brand Concept Store in Tokyo's prestigious Ginza District. We have now also begun work on Armani/Fifth Avenue, which will become our fifth Concept Store when it opens in New York early in 2009. These Concept Stores reflect the new way that fashion consumers are shopping today by offering an integrated mix of my collections in one location. During 2008 we plan to add over 50 new stores to our network around the world, both in emerging markets, including our first presence in India, and in existing more mature markets where opportunities still exist for expansion."

The company continued to make significant capital investments − as much as 95 million Euros − throughout 2007 with the aim, in particular, to develop its retail network through the opening of 49 new stores. Today the company's retail network, including both those directly owned and in franchising, consists of 471 stores. The Group has also continued to invest in its manufacturing capacity to improve efficiencies and production quality.

Analysis of wholesale revenues per brand
All the Group's lifestyle brands have grown significantly:
The Giorgio Armani brand, which includes the Group's signature prêt-a-porter collection, generated wholesale revenues of 870 million Euros, an increase of +13% compared to 2006 (+15% at constant exchange rates). The Emporio Armani brand, the Group's younger, fashion-driven collection, achieved wholesale revenues of 647 million Euros, a +20% increase (+24% at constant exchange rates) on the previous year. Armani Collezioni, the Group's elegant wear diffusion collection, saw wholesale revenues rise to 300 million Euros, a +8% compared to 2006 (+15% at constant exchange rates).

Meanwhile, in Group's most accessible collections also saw solid performance with Armani Exchange's wholesale revenues growing +25% (+38% at constant exchange rates) to 201 million Euros and Armani Jeans registering wholesale revenues of 291 million Euros up +5% on 2006 (+6% at constant exchange rates).

Armani Junior, which includes the Armani Teen and Armani Baby collections saw rapid growth of +47% (+47% at constant exchange rates) in the year bringing wholesale revenues to 35 million Euros.
Armani/Casa the Group's home furnishings collection also saw important growth with revenues expressed at retail value rising to 38 million Euros, representing an increase of 52% at current exchange rates. This growth has been generated both by the expansion of the retail and wholesale business and by the increasing number of projects being undertaken by the Armani/Casa Interior Design Service. In 2008 and 2009 Armani/Casa's revenues will begin benefit from revenue flows arising from the opening of the first Armani Hotels & Resorts and the sales of the first Armani Residences.

The Armani Group
The Armani Group is one of the leading fashion and luxury goods groups in the world today with 5,000 direct employees and 13 factories. It designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewellery, home furnishings, fragrances and cosmetics under a range of brand names: Giorgio Armani Privé, Giorgio Armani, Armani Collezioni, Emporio Armani, AJ | Armani Jeans, A/X Armani Exchange, Armani Junior, Armani Baby and Armani Casa. The Group's exclusive retail network currently comprises: 73 Giorgio Armani boutiques, 12 Armani Collezioni stores, 140 Emporio Armani stores, 128 A/X Armani Exchange stores, 18 AJ | Armani Jeans stores, 7 Armani Junior stores, 1 Giorgio Armani Accessori, 1 Emporio Armani Accessori store and 33 Armani Casa stores in 46 countries. The Armani Group has also announced its intention to open a unique collection of luxury hotels and resorts in the world's most important cities and destinations.

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