Armani sees no slowdown, even in China
By Astrid Wendlandt and Isla Binnie :
Italian fashion house Giorgio Armani on Tuesday said it had not seen a slowdown, even in China, the industry's main engine of growth, where rivals noted more muted demand in recent months.
Armani, owned by its eponymous founder, said revenue rose 16 percent last year to 2.1 billion euros ($2.70 billion) - the same growth rate as Italian rival Gucci, whose sales are nearly twice that at 3.65 billion euros.
Many listed luxury groups, including LVMH, Richemont, PPR and Hermes, have said sales were slowing as China's crackdown on corruption affected gift giving, and as demand in Europe fell due to depressed local spending and lower tourist numbers.
The Italian luxury goods maker, which sells clothes, watches, cosmetics, furniture and eyewear, said demand was particularly strong in China, where turnover rose 39 percent last year.
The company said sales growth was over 10 percent in all of its markets, with Europe holding up in the face of a recession.
Total turnover, including licensed products, reached 7.4 billion euros last year, putting it on par in terms of sales with LVMH's Louis Vuitton, and making it twice as big as Prada, whose brands include Miu Miu and shoe maker Church's.
Giorgio Armani is about the same size in terms of net sales as Burberry, which also saw resilient growth in Asia last year, although the British brand's overall revenue rose 8 percent last year.
Armani, which has a cash pile 565 million euros, does not plan to purchase other Italian fashion brands to shield them from foreign predators, Italian press quoted Armani as saying.
"To become the head of a conglomerate would mean destabilising a very delicate balance," Armani told the Italian daily Corriere della Sera in an interview published on Tuesday.
"Personally, I have always linked good liquidity to concepts such as independence and solidity."
Armani, who at 77 does not have an obvious heir to his empire, said he had planned his succession, declining to give details.
"I have been planning the 'after-me' phase for years. I have a trusted working group that will be able to safely manage the transition when the moment comes.
"Pragmatism is one of my strengths: do you think I could fail to address a crucial issue such as my succession?" ($1 = 0.7778 euros) ($1 = 0.6570 British pounds)
Reuters
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