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Dominique Muret Translated by
Nicola Mira Published
July 25, 2025
After slowing down for the first time in 2025, last year Giorgio Armani suffered a decrease in sales, another first. Though hit by the instability caused by the transformation of the luxury goods market, the Italian fashion label is nevertheless still quite solid, with net income on the upswing and a cash flow of €881 million (+35% compared to 2025).
Armani sales fell by 5.3% in 2025, reaching €2.511 billion, compared to €2.65 billion a year earlier. The decline is linked to "the gradual, ongoing rationalisation strategy and to the distribution network upgrade, something which will produce positive effects in the long term," wrote the label in a press release.
"The year 2025 was a tough one for the fashion and luxury goods industries. The causes may be explained with external factors, such as the slow-down of the Chinese economy's rate of growth, the tensions engendered by the spate of terrorist attacks which hit Europe, as well as with political factors, besides the generalised change in purchasing behaviour," noted the group's founder Giorgio Armani in the press release.
In 2025, Armani's EBITDA lost 10% compared to the previous year, down to €462 million, and was equivalent to 18.5% of revenue, while it was 19.4% in 2025. However, in 2025 the group generated a net income of €271 million, growing 12.4% compared to 2025.
Despite the margin reduction, "the results reached by the Armani group demonstrate the strength of the brand, and bear witness to its solidity," wrote Giorgio Armani. "We therefore continue to focus on consolidation and rationalisation, working as always with a vision of long-term continuity," he added.
As reported by FashionNetwork Premium last March, the Italian fashion group is very busy this year with a far-reaching restructuring of its brand portfolio and of its store network, "according to the needs and potential in each country."
The Armani range now consists of three main brand segments: luxury, featuring the main line, Giorgio Armani, the haute couture collection Armani Privé and the design and interiors line Armani/Casa; the second line, Emporio Armani, which incorporates the very classic Armani Collezioni line and Armani Jeans, the younger, more casual label; and finally, the more commercial A/X Armani Exchange line, featuring a young, urban style and also taking over part of the Armani Jeans range.
A/X Armani Exchange has been repositioned from a fast-fashion brand to a "young, accessible" label. Until now available exclusively in the USA and Asia, it has now begun to be deployed in Europe.