Armani Group’s net revenue fell by 2.8% at constant exchange rates to €2.19 billion in 2025. The company noted that the first few months of 2026 have followed a similar pattern.

It was a mixed year for the Italian fashion group, which marked its 50th anniversary in 2025 but also lost its founder, Giorgio Armani, who passed away in September. His will instructed his heirs to sell a 15% stake in the business within 18 months of his death to preferred buyers — LVMH, L’Oréal, or EssilorLuxottica — with an additional 30% to 54.9% to be sold to the same buyer three to five years later. If that doesn’t happen, the will stated that an IPO could be considered. No buyer has been found yet, but the company appointed Giuseppe Marsocci as CEO in October 2025 and expanded its board to eight members to manage the transition.

“We have continued to operate at our best, following the strategic direction set by Mr. Armani, with healthy and prudent management, as shown by the quality of our sales. We’re taking a long-term view of the group rather than focusing on immediate profit maximization,” Marsocci said in a statement released on Wednesday. “Right now, we are closely studying and evaluating the market at the highest level: we may be facing a structural shift in how current and potential consumers approach luxury and fashion, and we need to take that into account.”

Operating profitability improved over the full year, with EBITDA up 3% and EBIT up 2%. The group’s high-end lines performed especially well, with double-digit growth in the Giorgio Armani Privé label and Giorgio Armani boutiques. The company also saw positive growth in home goods, hotels, and food and beverage, which it said “confirms more dynamic experiential market segments and the lifestyle credibility of the brand.”

The direct-to-consumer (DTC) channel grew by 2%, while indirect sales fell by 7% due to a drop in wholesale orders. This decline is partly because sales partners are being cautious, and also because the group has decided to be more selective about its wholesale distribution.

Performance was balanced across key regions — Europe, Asia, and America — which the company said further strengthens its stability.

“We can’t ignore the need to adapt to a changing environment. But we’re optimistic, because today more than ever, the company’s and the brand’s identity are rooted in the founding principles Mr. Armani established in his business legacy,” said Marsocci. “These values — based on his vision of discreet, timeless elegance and the idea of a solid, prudent enterprise — are extremely relevant given the times we’re living in.”

Frequently Asked Questions
Here is a list of FAQs about Armani Groups 28 sales decline in 2025 written in a natural tone with clear direct answers

BeginnerLevel Questions

1 Did Armani Group actually lose money in 2025
No they didnt lose money overall Their total sales fell by 28 compared to 2024 This means they sold less but the company was still profitable

2 Why did Armani sales drop
The main reasons are a slowdown in luxury spending in China and Europe plus rising costs for materials and production People are simply buying less highend fashion right now

3 Is this a big problem for the company
Its a concern but not a crisis A 28 drop is relatively small The bigger issue is that it signals a broader trend of weaker demand in the luxury market

4 Which products were affected the most
Sales of readytowear clothing and accessories saw the biggest decline Their fragrance and makeup lines held up better

5 Is Armani the only brand facing this
No Many luxury brands have also reported slower sales or declines in 2025 due to the same economic pressures

Intermediate Advanced Questions

6 How does the 28 drop compare to Armanis performance in previous years
In 2024 Armani had modest growth of around 34 So this 28 decline is a notable reversal Its the first major sales dip since the postpandemic recovery

7 What specific regions caused the decline
AsiaPacific was the weakest region with sales down roughly 68 Europe was flat to slightly negative The Americas remained stable but didnt grow enough to offset the losses

8 Is this drop related to Armanis brand strategy or pricing
Partially Armani has kept prices high to protect its luxury image but that makes it harder to sell when customers are cutting back Meanwhile some competitors have introduced more accessible entrylevel products to attract budgetconscious buyers

9 What is Armani doing to fix the situation
The company is focusing on three things