Armani Posts 'Single Digit' Sales Drop in 1st Half

FILE PHOTO: Designer Giorgio Armani appears at the end of his Haute Couture Fall/Winter 2024-2025 collection show for Giorgio Armani Prive in Paris, France, June 25, 2024. REUTERS/Yves Herman/File Photo
FILE PHOTO: Designer Giorgio Armani appears at the end of his Haute Couture Fall/Winter 2024-2025 collection show for Giorgio Armani Prive in Paris, France, June 25, 2024. REUTERS/Yves Herman/File Photo
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Armani Posts 'Single Digit' Sales Drop in 1st Half

FILE PHOTO: Designer Giorgio Armani appears at the end of his Haute Couture Fall/Winter 2024-2025 collection show for Giorgio Armani Prive in Paris, France, June 25, 2024. REUTERS/Yves Herman/File Photo
FILE PHOTO: Designer Giorgio Armani appears at the end of his Haute Couture Fall/Winter 2024-2025 collection show for Giorgio Armani Prive in Paris, France, June 25, 2024. REUTERS/Yves Herman/File Photo

Italian fashion house Giorgio Armani managed to keep its operating profit steady last year and grow net sales by 6% at constant currencies, despite a 'single-digit' slowdown in revenues in the second half which continued this year.
The weakening in sales observed through the first six months of 2024 reflects "an adjustment within the luxury market, especially in the Asia ex-Japan region and the more accessible segment of the offer," Reuters quoted Armani as saying in a statement.
Armani said the group had hiked retail prices only modestly, despite higher inflation driving up costs, because it remained focused on medium-term goals and would not use prices to inflate sales and margins in the meantime.
"We are well-prepared to manage a market slowdown without needing to maximize year-on-year profit at all costs," Giorgio Armani, who turned 90 earlier this month, said in statement.
"I remain steadfast in my belief that a focus on continuity and a pragmatic, consistent approach ... is the only way to navigate the challenges and uncertainties that characterize today's environment," Armani, who is chairman and chief executive of the group he founded, added.
Operating profit at the Milanese group, which makes more than half of its revenues in Europe, totaled 215 million euros.
The family-owned group posted net revenues of 2.45 billion euros ($2.65 billion) last year.



Sandal Scandal: Prada Credits New Design's Indian Legacy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
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Sandal Scandal: Prada Credits New Design's Indian Legacy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Luxury fashion powerhouse Prada has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked a furor among Indian artisans and politicians thousands of miles from the catwalk in Italy.

Images from Prada's fashion show in Milan last weekend showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century.

A wave of criticism in the media and from lawmakers followed over the Italian brand's lack of public acknowledgement of the Indian sandal design, which is named after a city in the western state of Maharashtra.

Lorenzo Bertelli, son of Prada's owners, responded to the sandal scandal in a letter to a trade group on Friday recognizing their Indian heritage.

"We acknowledge that the sandals... are inspired by traditional Indian handcrafted footwear, with a centuries-old heritage," Bertelli, Prada's head of corporate social responsibility, wrote in the letter to the Maharashtra Chamber of Commerce, seen by Reuters.

The sandals are at an early stage of design and it is not certain they will be commercialized, but Prada is open to a "dialogue for meaningful exchange with local Indian artisans" and will arrange follow-up meetings, he wrote.

A Prada spokesperson issued a statement acknowledging the sandal's inspiration from India, adding the company has "always celebrated craftsmanship, heritage and design traditions".

Prada products are beyond the reach of most Indians. Its men's leather sandals retail for $844 and up, while the Kolhapuri slippers, sold in Indian shops and street markets, start at about $12.

India's luxury market is small but growing fast, with rising numbers of rich people buying Louis Vuitton bags, Lamborghini cars, luxury homes and watches.

Conversely, Indian culture and crafts are increasingly finding their way into global brand designs. High-end jeweler Bulgari offers a $16,000 Mangalsutra necklace inspired by a chain traditionally worn by married women.

Bertelli's homage to Indian design was sent in a response to a complaint from the head of the trade group that represents 3,000 Kolhapuri sandal artisans, as the online uproar gathered momentum.

"From the dusty lanes of Kolhapur to the glitzy runways of Milan... will the world finally give credit where it's due?" India's DNA News posted on X.

Sambhaji Chhatrapati from the Kolhapur Royal family told Reuters by phone he was upset that craftsmen had not been acknowledged for the "history and heritage of 150 years."

Kolhapur-based businessman Dileep More, however, said images of the Prada sandal were bringing cheer to some artisans as they show their traditional product going global.

"They are happy that someone is recognising their work," he said.