“Priority goes to product quality and customer experience, even at the cost of sacrificing margins in the short term”, stated Giuseppe Marsocci, deputy general manager and commercial director of Armani Group. However, the investments made by the company to pursue long-term success have taken a toll on the 2024 budget.
332 million euros invested
Armani Group invested 332 million euros in 2024, almost double the amount it did in 2023 and nearly three times the average investment of previous years. “We invested in projects of great symbolic and practical value, fundamental for the future of the company”, comments Giorgio Armani. He also emphasized how his group has maintained independence and stability. “I am confident that the current market difficulties and international tensions will ease in the near future”, says Armani (source WWD).
EBITDA down 24% in 2024
EBITDA for 2024 (before interest, taxes, depreciation, and amortization) was down 24% compared to 2023, amounting to 398 million euros. In addition to investments, “moderate pricing policies, with increments below the rate of inflation” highlighted by Marsocci may have weighed on the margin decline. As well as “a model focused on quality rather than quantity”. All choices that should reward the group “when the market starts growing again”.
An eye to the future
“During 2024, although aware of the market slowdown that was evident by the second half of 2023, and the many challenges arising from the international context, I continued to work with an eye to the future”, concludes Armani. In 2024, group sales decreased by 6% to 2.3 billion euro, (at constant exchange rates, sales decreased 5%).
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