Armani’s luxury dilemma: sales are falling, but profits are rising

Armani’s revenue declined in 2025, but the Italian luxury brand chose (in part) to do so itself through price increases, stricter cost control, and a focus on higher margins. Meanwhile, the fashion house is seeking a new partner, as requested by its late founder.

A change of direction

Revenue for the Armani brand fell by 2.8% to 2.19 billion euros, while total revenue—including licensing partners—stagnated at 4 billion euros. CEO Giuseppe Marsocci points to a structural shift in how consumers view luxury. “We are seeing a change in the approach to luxury and fashion by both current and potential buyers,” said Marsocci. “We must take that seriously.”