Italian fashion group Armani has created a record turnover of no less than 2 billion euro in fiscal year 2013. The company vows to keep investing into the expansion of its own chain of stores.
Exchange rates impact turnover
Armani managed a record 2.19 billion turnover in 2013, 4.5 % better than the year before, even though turnover grew more that year (+ 16%). The company can look back with satisfaction as it managed growth in every market and for every brand, despite the exchange rates negatively impacting the end result. If their effects could be ignored, 2013's growth would have been 8.3 %. China's slowed growth also had its effects.
The record turnover helped Armani to reach a 401 million euro operational profit, 18 % higher than the year before. Last year, the company had also invested 100 million euro into the expansion of its chain of stores and into the improvement of its supply chain, among others. It will keep up these investments this year, with the goal to open at least as many stores this year as it has done last year.
Alongside these investments, Armani has purchased the remaining 50 % of A/X Armani Exchange, a fast-fashion brand it hopes to use to compete with brands like H&M and Zara. Currently, A/X Armani Exchange has some 270 stores worldwide.
It does however get criticized quite a bit as it increasingly focuses on the middle of the market, which may degrade the luxury brand's image, while other brands (like Gucci and Louis Vuitton) have moved into the direction of the richer customers.