Armani sees no sign of China slowdown

City A.M. Reporter
ITALIAN fashion house Giorgio Armani said yesterday 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 per cent last year to €2.1bn (£1.8bn) – the same growth rate as Italian rival Gucci, whose sales are nearly twice that at €3.65bn.

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 per cent last year. The company said sales growth was over 10 per cent in all of its markets, with Europe holding up in the face of a recession.

Total turnover, including licensed products, reached €7.4bn last year, putting it on par in terms of sales with LVMH’s Louis Vuitton.