Armani Group: record results for 2005

Giorgio Armani has announced its financial results for the year ended 31 December 2005, which show record revenues and significant increases in profitability powered by the company's aggressive worldwide wholesale and retail expansion programme supporting its unique multi-brand fashion and lifestyle strategy.

In the year 2005, consolidated net revenues rose to a record level of Euro 1,428 million, a 10% growth at current exchange rates compared with 2004, while the company's EBITDA increased + 10% to Euro 263 million, representing 18% on Consolidated Net Revenues, and EBIT increased + 18% to Euro 191 million. The company's net financial position remains exceptionally strong with a positive balance of Euro 443 million at the year end following a capital investment programme of Euro 104 million during the year, of which Euro 36 million was directed to the retail business.

Giorgio Armani, President and Chief Executive of Giorgio Armani SpA, said: 'In this record breaking year for the Armani Group, we have many achievements to celebrate including the successful launch of the Giorgio Armani Privé couture collection; the signing of a joint venture agreement for the worldwide expansion of A/X Armani Exchange; the expansion of our Armani/Casa brand with 23 freestanding stores and 52 shop in shops now open around the world; the remarkable growth of our business in Greater China, which now represents our second most important market in Asia after Japan; the opening of over 270 new points-of-sale for our fast growing accessories business; the growth of our eyewear collections (+14%) following a carefully programmed restructuring; the implementation of our fast-track expansion programme into the travel retail and duty free marketplace; and, the completion of a significant real estate transaction for a new flagship store and corporate headquarters in Tokyo's Ginza district'.