Armani Streamlines Sales Network To Save Itself

According to the world clothing shoes and hats net, Giorgio Armani SpA

The group said that "difficult" 2016 brought its sales and profitability down for the first time after the 2009 financial crisis.

The group will further deepen its announcement last year.

And the retail network restructuring plan to counter the negative impact of China's economic slowdown and the overall pformation of buying behavior and attitude.

At the beginning of this year, Giorgio Armani SpA Armani group announced the termination of the two sub brands of Armani Collezioni and Armani Jeans, and only retained the high-end Giorgio Armani, mid-range Emporio Armani and the lowest priced three brands.

Integration of formal, leisure and sports occasions.

The Emporio Armani and accessories will absorb Armani Collezioni and Armani Jeans. Some Armani Jeans products will also be integrated into the Armani style street clothing brand A|X Armani Exchange, but because of the wholesale and multi brand distribution as the main factor, the impact on the retail network is not large.

As for the advanced custom series Giorgio Armani Priv, and home and interior design brand Armani/Casa will become part of the Giorgio Armani brand.

In September this year, the group will open accounts for Giorgio Armani, Emporio Armani |X and |X Armani Exchange on the three social media platforms of Facebook, Instagram and Twitter to enhance publicity.

According to the income, Giorgio Armani SpA Armani group is the second largest luxury group in Italy, which is next to 3 billion 350 million SpA Prada SpA (1913.HK). (Note: it does not include the French luxury group kering SA (KER.PA) Kai Yun group's Italy brand Gucci Gucci Gucci).

In 2016, the Group recorded an income of 2 billion 510 million euros, down 5.2% from 2 billion 650 million euros in 2015.

The group said sales in various markets remained "balanced", while Europe still accounts for about 40% of the group's global revenues.

The core profit EBITDA decreased by 10% to 462 million euros per annualized year, and EBITDA profit margins dropped to 18.5% from 19.4% in the previous year, lower than those in the previous three years.

Net profit was benefited from cost control, which increased by 12.4% to 271 million euros compared with the same period last year.

Mobile cash also increased by 34.7% to 881 million euros.

In fact, the luxury industry has already recovered in 2016.

LVMH, Mo, t Hennessy Louis Vuitton SE (LVMH.PA), Hon Road, Wei Yan Xuan group, Kering SA (KER.PA) Kai Yun group, as well as the T, which has been immune to the fluctuation of the luxury market, has achieved at least 5% growth in fiscal year.

Analysts have been questioning the Giorgio Armani SpA Armani group's multi line development strategy to dilute the attractiveness of Giorgio Armani as a luxury brand. Giorgio Armani SpA Armani's former chairman, John Hooks, also revealed that the rapid expansion of the group in the midfield was the reason why he left the company in 2011.

Exane BNP Paribas SA Luca Solca, an analyst at the Bank of Paris, France, pointed out that Giorgio Armani SpA, Armani group and the United States Ralph Lauren (Ralph Lauren) group are suffering from the same illness. Over the past ten years, in the mid-range market, more and more fierce competition has emerged from the light luxury brands such as, ",", "and", and so on. The clothing oriented brands and brands are also not rivals for leather shoes, shoes and accessories, and Louis Weedon.

Bain & Co. Bain and Italy luxury goods association Altagamma Altagamma predict that this year the luxury industry will record a fixed exchange rate growth of 2%-4%, but the gap between winners and losers will widen.

On the other hand, Giorgio Armani Giorgio Armani has recently bought 4.64% of the world's largest eyewear manufacturer, Luxottica Group SpA (MTA:LUX), Lu Xun Tai card group, to join the tide of integration of high-end eyewear industry this year.

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Since January this year, Luxottica Group SpA Lu Xun card group has announced the merger with the world's largest lens manufacturer and France's Essilor International SA ESSI.PA (ESSI.PA) group to break through the problem that the former founder Leonardo Del Vecchio has no children willing to take over. Since then, the company has decided to form an alliance with the eyeglasses manufacturer.

At present, the largest shareholder of the Luxottica Group SpA Lu Xun TCA group is still the Delfin SARL of the group's founder and executive chairman, Leonardo Del Vecchio Vecchio, holding a shareholding ratio of 62.45%, while the public shareholding ratio is 31.57%.

The 83 year old Giorgio Armani has no children and holds a 100% stake in the Giorgio Armani SpA, Armani group.

He founded the foundation Giorgio Armani Foundation in 2016 to solve the inheritance problem that has attracted much attention from the industry for many years.

When the foundation was announced in July last year, Giorgio Armani Armani said that Giorgio Armani Foundation would protect the assets management of Armani Group and Armani group, and ensure that these assets remained stable under certain principles that they paid special attention to.

He further explained the foundations of these principles, including autonomy and independence, management based on integrity and moral integrity, emphasis on innovation and excellence, and proper investment, prudent balance of financial management, limited borrowing and prudent mergers and acquisitions to maintain the sustainable development of Armani brand, and this must be the first priority of the foundation.

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