The Milan-based fashion group Giorgio Armani reported another year of gains in profits and revenues in 2012, boosted by a 39% increase in China.
In the year ended Dec. 31, operating profits rose 20% to 339 million euro, or 434 million dollars, compared with 281.8 million euro, or 391.7 million dollars, in 2011.
Sales increased 16% to 2.09 billion euro, or 2.68 billion dollars, compared with 1.8 billion euro, or 2.5 billion dollars, the previous year.
Dollar amounts are converted at average exchange rates for the periods to which they refer.
“The excellent results achieved in 2012 confirm the quality of leadership that we have here at Armani,” said the designer.
The figures are “the result of a strategy focused on the constant search for quality, an approach that over the years has built an extraordinary level of brand awareness and loyalty.”
The group registered a third consecutive year of organic growth at retail and wholesale and said all labels contributed to the 2012 performance, in particular the Giorgio Armani and Emporio Armani brands.
The designer said that the company has “continued to enjoy a strong relationship with [its] wholesale partners.”
Last year, group revenues reached a record 7.4 billion euro, or 9.47 billion dollars, compared with 6.73 billion euro, or 9.35 billion dollars, the previous year.
“Data collected for the year 2013 are very positive so far,” Armani said. “Strategies adopted on many fronts are showing important and significant results. It is too early to make predictions, of course, but I expect the positive trend to continue for this year. My energy as a designer and entrepreneur are entirely channelled in this direction.”
Armani said that he looked “ahead with confidence,” and that the positive performance in the first quarter of 2013 confirm that the group’s “commitment to consistency, continuity and long-term strategy is the right path to follow.”
In 2012, all markets showed double-digit growth, including Europe, despite the economic slowdown.
Europe was the biggest market for the group, with sales of 1.02 billion euro, or 1.31 billion dollars.
In second place was the Far East with sales of 512 million euro, or 655.3 million dollars.
North America posted sales of 355 million euro, or 454.4 million dollars.
The Rest of the World area reported revenues of 203 million euro, or 260 million dollars.
The group’s brands include Giorgio Armani Privé, Giorgio Armani, Emporio Armani, Armani Collezioni, AJ Armani Jeans, A|X Armani Exchange, Armani Junior and Armani/ Casa.
The company closed 2012 with a cash position of 565 million euro, or 723.2 million dollars, compared with 642.8 million euro, or 893.5 million dollars, in 2011, impacted by capital expenditure.
“In a company like Giorgio Armani, capital expenditure represents an invaluable leverage for innovation and growth,” said Armani.