|CORPORATE PRESS RELEASE|
FINANCIAL RESULTS FIRST HALF 2004
OCTOBER 1, 2004, MILAN – The Armani Group today announces results for the first half of 2004, which show another industry leading performance with consolidated net revenues increasing to Euro 644 million, representing a growth of + 8% at constant exchange rates (+ 5% at current exchange rates) and EBITDA rising +14% to Euro 122 million (representing 19% of turnover), compared with the first half of 2003 . In the period, EBIT also rose by + 23% to Euro 89 million (representing 14% of turnover).
Giorgio Armani, President and Chief Executive of Giorgio Armani S.p.A., said:
“In the first half of 2004 the Armani Group has delivered an industry leading performance with a notable increase in profitability against a background of solid growth in our brand and product categories and in all of our geographic operating regions. These results once again prove the success of our chosen business strategy as an independent, vertically integrated fashion and lifestyle company.
We continue to drive expansion through the ongoing re-investment of our cash flow in supporting the group’s strategic priorities. In this respect I wish to draw special attention to both the positive trend of our direct store network sales throughout the world - most notably in the key markets of the United States and Japan and the emerging China market - and the dynamic growth we are now seeing in our accessories business. This positive momentum demonstrates the return we are now seeing on the investment we have made in these two important areas over the last several years.
In summary, as we approach the company’s 30th anniversary year in 2005, I am confident that the results for the full year 2004 will once again illustrate why the Armani Group maintains a reputation for delivering consistent growth and profitability.”
China + 47 %
With growth across all brands:
Giorgio Armani + 10 %
Product Category Sales
Giorgio Armani / Emporio Armani Accessories + 30 %
Highlights of first half 2004:
The Armani Group is one of the leading fashion and luxury goods groups in the world today with 4,600 direct employees and 13 factories. It designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewellery, home interiors, fragrances and cosmetics under a range of brand names: Giorgio Armani, Armani Collezioni, Emporio Armani, AJ | Armani Jeans, A/X Armani Exchange, Armani Junior and Armani Casa. The Group’s exclusive retail network currently comprises: 59 Giorgio Armani boutiques, 11 Armani Collezioni stores, 123 Emporio Armani stores, 74 A/X Armani Exchange stores, 13 AJ | Armani Jeans stores, 6 Armani Junior stores, 1 Giorgio Armani Accessori store and 17 Armani Casa stores in 37 countries.