THE ARMANI GROUP REORGANIZES ITS BRAND PORTFOLIO AMONG 2016 FINANCIAL RESULTS ANNOUNCEMENT
TWITTER: @FashionInsider1/ INSTAGRAM: TheFi_Mag
Images Courtesy of Armani Privé
Milan, Italy – In response to a constantly changing scenario, and in view of a highly competitive global market, the Armani Group is carrying out an operation to simplify and reorganise its brand portfolio. The aim is to strengthen individual brands, redeploying its portfolio to maximise its potential with respect to its relevant targets. The reorganisation, from SS18 collection on, focuses on Giorgio Armani, Emporio Armani and A|X Armani Exchange. As a result of the distribution rationalisation, the Armani Collezioni and Armani Jeans lines will be rebranded under Emporio Armani.
The substantive approach and careful analysis of diverse markets will lead to a strategy of newly defined and targeted development of the retail network, based on expansion and rationalisation of the number of retail outlets, according to the needs and potential of the different countries in which the Armani Group operates.
LIFESTYLE AND DIFFERENTIATION PHILOSOPHY
GIORGIO ARMANI (including Giorgio Armani Privé and Armani/Casa)
The Giorgio Armani brand reinforces its identity, which is distinguished by timeless elegance, highly crafted detailing, clean lines. Giorgio Armani is distinctively associated with prestige and a unique, recognisable image that expresses the values that have always been connected with the brand: luxury, craftsmanship, excellence of manufacture and the use of superior-quality materials.
Giorgio Armani Privé and Armani/Casa are linked to the Giorgio Armani world of luxury. The Giorgio Armani Privé haute couture collection is the supreme expression of the creativity, elegance and refinement of the Armani style, meeting the needs of a discerning and sophisticated clientele. The Armani/Casa collection, now established as an important international presence in the market for luxury furniture, represents a byword for elegant lifestyle, and through its Interior Design Studio provides a service fully tailored towards private individuals and property developers, from the concept phase up to monitoring the completion of the project.
Emporio Armani – which has reached a high level of recognition worldwide – has a strong dynamic and metropolitan spirit and reflects all the features of elegance of the Armani aesthetic, expressed in an incisive and contemporary idiom.
The brand, which is now to absorb Armani Collezioni and Armani Jeans, returns to its original identity: once again, Emporio Armani is a vehicle through which to offer a wide choice of clothes and accessories for every purpose and occasion, ranging from sportswear to formal and occasion- wear, thus serving a variety of different consumer targets. The brand is renowned for its approach to cutting-edge style and the ability to pinpoint fashion trends and anticipate them. While maintaining its distinctive features – experimentation and constant evolution – this collection will continue to serve those with a taste for modern and innovative fashion.
A|X ARMANI EXCHANGE
This brand will now include part of the product area previously served by Armani Jeans. A|X Armani Exchange establishes itself as the new streetwear label in the Armani style – young, informal, urban, versatile and modern – utilizing digital channels as its primary means of communication.
Following the reorganisation of the Group’s brand portfolio, the number of retail outlets of the three brands will evolve rationally on the basis of the new positioning, continuing to guarantee extensive distribution in the various geographical areas in which the Armani Group operates.
In the same vein and with the aim of increasing the visibility of each collection, as from mid-September the social media channels Facebook, Instagram and Twitter will have separate dedicated accounts for Giorgio Armani, Emporio Armani and A|X Armani Exchange.
SUMMARY OF 2016 FINANCIAL RESULTS
In 2016, the Armani Group achieved positive financial results, albeit in the context of a slight decline in net revenues and operating margins, while continuing the strategy of consolidation and rationalisation of its international distribution network, characterised by the balancing of the retail and wholesale channels.
- In 2016, the Group’s consolidated revenues were 2,511 million euros, representing a drop of 5% when compared to the previous year. The phase of slight contraction in revenues and margins compared to the preceding three years, recorded in the current fiscal year, is linked to the ongoing strategy of progressive and continuous rationalisation and revamping of the distribution network, which will produce positive effects in the long term. Notwithstanding the decline in net revenues, thanks to application of cost- control measures, the Group’s net profit reached 271 million euros, exceeding the 241 million euros recorded in the preceding year.
- Improvement recorded in assets and financial statements: at year- end 2016 liquidity had increased by 35% to reach 881 million euros (it was 654 million euros at year – end 2015).
- Continuation of the gradual introduction into Europe of the A|X Armani Exchange collection, managed directly by the Group as part of the relaunch and repositioning plan initiated in 2014, the year in which full control was acquired of the joint venture that had previously been entrusted with the development and marketing of the brand.
‘2016 proved to be a difficult year for the fashion and luxury sector. The causes may be attributed to external factors, notable among which are the slowdown in the growth rate of China’s economy, the socio – political tensions created in the aftermath of the terrorist attacks that struck Europe, and other factors of a political nature; in addition to this there has also been a general change in purchasing behaviours and attitudes. Notwithstanding the foregoing, the results achieved by the Gruppo Armani demonstrate the strength and resilience of the brand and confirm its solidity. We are therefore continuing along the path of consolidation and rationalisation, operating as always with a view to continuity and long – term perspective.’ says Giorgio Armani, President of the Giorgio Armani Group.