Armani Group has reported a 5 per cent drop in revenue for fiscal 2024, which the company links to subdued consumer spending and weak performance in Asia Pacific.

Total sales reached US$2.65 billion, while net cash and equivalents declined to $656 million from $1.09 billion. EBIT was $77 million, and pre-tax profit came in at $86 million.

The Italian fashion house stated that, despite signs of a slowdown emerging in the second half of last year, it will continue to operate with a long-term perspective.

“The year 2024 closed with positive results, the fruit of solid and prudent management, further confirming the group’s solidity,” said the company.

In terms of regional performance, Europe remained the group’s largest market, contributing 49 per cent of annual revenue, while the Americas accounted for 22 per cent. Revenue in Asia Pacific declined to 19 per cent of the total, with the company pointing to weaker demand in China.

Despite the decline, Armani doubled its annual investment to nearly US$383 million, up from $194 million in the previous year. The spending was directed towards store renovations and bringing e-commerce operations in-house.

Deputy MD and CCO Giuseppe Marsocci said that in addition to the said investments, the company maintains a restrained pricing approach, with increases below inflation levels.

“Ultimately, the decision was to prioritise product quality and the customer experience, even at the cost of sacrificing margins in the short term, in the conviction that this choice will make us more competitive when the market returns to growth,” he added.