Armani Group Reports 5% Revenue Decline, 24% Profit Drop Amid Luxury Slowdown

The Armani Group reported a 5% decline in consolidated net revenues to €2.3 billion in fiscal 2024, reflecting a broader slowdown in the global luxury market exacerbated by macroeconomic uncertainty and weakening demand in China. Despite this downturn, the company maintained solid financial results and doubled its investments to a record €332 million, funding extensive flagship store renovations and bringing e-commerce operations in-house. Geographic revenue distribution remained stable with Europe accounting for 49%, the Americas 22%, and Asia-Pacific declining slightly to 19% due to the Chinese market slowdown. EBITDA fell 24% to €398 million, with EBIT and profit before tax also decreasing in line with reduced earnings and increased extraordinary investments. Armani's cash holdings dropped about 40% to €570 million, largely due to renovation expenditures. This performance aligns with trends seen across the luxury sector, including challenges faced by other major players like LVMH and Hermès in China.