Giorgio Armani S.p.A.
| Type | private |
|---|---|
| Genre | Textiles & apparel |
| Founded | 1975 |
| Founder(s) | Giorgio Armani and Sergio Galeotti |
| Headquarters | Italy |
| Key people | Giorgio Armani (CEO) |
| Revenue | USD 6,400,000,000 (2005) [1] |
| Net income | USD 172,200,000 (2004) [1] |
| Employees | 4,600 [2] |
| Website | http://www.giorgioarmani.com |
"Giorgio Armani is known for the sleek, unstructured look of its men's and women's suits. The firm licenses its name for perfume, watches, and accessories, but apparel still accounts for more than half of sales. Armani's retail empire spans more than 35 countries and includes nearly 300 stores. Armani owns Simint, the Italian holder of the Armani jeans license, and has been moving the production of other lines in-house. Armani has plans to develop a series of luxury hotels and resorts. Despite persistent flotation flirtations, the designer maintains ownership of his company." Yahoo Finance Profile
Contents
Company History
Giorgio Armani and Sergio Galeotti started the company in 1975 and made a deal to design for Italian clothing manufacturer Gruppo Finanziario Tessile (GFT). Armani's groundbreaking designs were showcased in advertising on the back page of L'Uomo Vogue, which led to a large order from Barneys New York in 1976. Armani designed Richard Gere's wardrobe in American Gigolo, which helped the brand reach mainstream fashion. After Galeotti died in 1985, Armani struggled to run the business. [3]
In the early 80s Giorgio Armani S.p.A. established an important licence agreement with L’Oreal (formerly H.Rubinstein) for fragrances and also launched the Emporio Armani and Armani Jeans collections. The company also began to strengthen its commercial and marketing divisions, while building the values of its brands and the philosophy of management, which continue to be fundamental to the success of the business today. In the second half of the 80s, Giorgio Armani S.p.A. continued its overseas expansion by opening Giorgio Armani Japan in 1987 through a joint venture with Japanese Itochu Corporation and the Seibu Department Store, followed by the signing of a licensing agreement for eyewear with Luxottica Group Spa in 1988. In 2000, Giorgio Armani’s, 25th anniversary year, the company acquired the production and distribution facilities of the Armani Collezioni and Mani men’s lines from GFT. In 2001, continuing with the Group’s strategy to take greater control over all aspects of its manufacturing, distribution and retail activities and to further focus on the ‘Made in Italy’ content of its brands, a joint venture company with Vestimenta SpA (one of the Armani Group’s licensees since 1979) was formed for the production and distribution of the men’s and women’s Giorgio Armani top line. In 2002, the Group’s retail investment programme continued at a fast pace with 16 store renovations and 30 new store openings in strategically important cities worldwide, including the second Armani multi-brand store covering 3,000 square meters at Chater House in Hong Kong, which also signalled the launch of a strategic retail expansion programme for China. On the manufacturing front, two important acquisitions were completed: Deanna S.p.A. for the production of high quality knitwear and I Guardi, which controlled four specialist shoe makers, to support the further growth of the Group’s shoe business. [4]
Historical Financial Information
Business Strategy
Political and Public Influence
Paragraph information
Political Contributions
Lobbying
Corporate Accountability
Paragraph
Labor
- 2005: "A former Armani manager has been awarded £18,000 after a tribunal ruled he was forced out of his job for being HIV positive. This employee ran the Emporio Armani restaurant [part of Giorgio Armani] in London. In April 2005 staff were told they would be made redundant when the store closed for refurbishment. In 1993, shortly after being diagnosed with HIV, this employee revealed his condition to bosses. His employers found alternative work for all his colleagues but not for him. Following this he brought an Employment Tribunal claim against Orthet, which retails and distributes Armani group products in the UK."[5]
- 2006: Armani supplier Fibres and Fabrics International and its 100% subsidiary Jeans Knit Pvt Ltd (FFI/JKPL) file suit against the Clean Clothes Campaign and the India Committee of the Netherlands, accusing them of cyber crime, acts of racist and xenophobic nature and criminal defamation. The Maquila Solidarity Network and other groups initiated a letter writing campaign, targeting Armani, G-Star, Mexx, Gap, Inc. to protest the companies' suit. Interviews with FFI/JKPL workers had previously revealed a range of labor abuses, including excessive workload, forced overtime, physical and psychological abuse, non-payment of overtime, and the failure to issue identity cards and employment contracts. These claims were backed up by a fact-finding mission carried out by seven human and women’s rights organizations that completed a report in August 2006. [6] CCC and ICN staff were cleared of charges in January 2008.[7]
Major reports: Clean Clothes Campaign. 2002. Inside the Garment Industry in Swaziland [8]
Human Rights
Environment
Consumer Protection and Product Safety
Anti-Trust and Tax Practices
Social Responsibility Initiatives
- Emporio Armani brand participates in (PRODUCT)RED, a consumer-based income-generating intiative to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria. Other participants include Gap Inc., Hallmark, Apple, Motorola, American Express and Converse (owned by Nike) [9]
Business Scope
Lines of business
- clothing
- perfumes & cosmetics
- eyewear
- watches & jewellery
- home furnishings
"In May 2005, an agreement was signed with EMAAR Hotels & Resorts LLC to develop an international chain of Armani hotels and resorts. EMAAR will oversee all the real estate, construction, organisational and management aspects of the Armani hotels and resorts, while Armani will handle the design and stylistic elements. The agreement provides for the opening of at least seven luxury hotels and resorts in the next ten years. The first Armani Hotel, which is slated to open in Burj Dubai in 2008, will be the highest skyscraper in the world. Openings will follow in Milan, London and New York." [2]
Units/subsidiaries
Brands
- Giorgio Armani
- Armani Collezioni
- Emporio Armani
- AJ Armani Jeans
- A/X Armani Exchange
- Armani Junior
- Armani Casa
Armani also awards licenses for:
- Emporio Armani Eyewear
- Emporio Armani Jewellery
- Emporio Armani Watches
- Emporio Armani Fragrances
- Giorgio Armani Cosmetics
- Giorgio Armani Fragrances
- Giorgio Armani Eyewear
- Giorgio Armani Leg and Bodywear: "In the year 2004 the Armani Group awards [Wolford AG], a multi-year license for the worldwide production and distribution of a new line of Giorgio Armani hosiery and bodywear." [10]
- Armani/Prive Watches
Customers
As of 2006, the group's exclusive retail network included 59 Giorgio Armani boutiques, 11 Armani Collezioni stores, 122 Emporio Armani stores, 71 A/X Armani Exchange stores, 13 AJ | Armani Jeans stores, 6 Armani Junior stores, 1 Giorgio Armani Accessori store and 17 Armani Casa stores in 37 countries. [11]
Suppliers
- "Though it still makes its swankiest label in Italy.
Giorgio Armani SpA says it produces 18% of its Armani Collezioni - which pitches wool trousers for $1,500, in Eastern Europe." [3]
- some of Armani's clothing is made in company-owned factories and carries the Made in Italy label.
Identified suppliers:
Competitors
Creditors
| Customers | Suppliers | Creditors | Competitors |
|---|---|---|---|
| Customer 1 | Supplier 1 | Creditor 1 | Competitor 1 |
| Customer 2 | Supplier 2 | Creditor 2 | Competitor 2 |
| Customer 3 | Supplier 3 | Creditor 3 | Competitor 3 |
| Customer 4 | Supplier 4 | Creditor 4 | Competitor 4 |
Financial Information (as of DATE)
Ticker Symbol:
Main Exchanges:
Investor Website:
Giorgio Armani is the sole shareholder of the company.
| Shareholder | % Total Shares held |
|---|---|
| Shareholder 1 | % Held 1 |
| Shareholder 2 | % Held 2 |
| Shareholder 3 | % Held 3 |
| Shareholder 4 | % Held 4 |
Largest Shareholders
Countries of operation
Subsidiaries in Italy, United States, United Kingdom, France, Sweden, Germany, Australia, Japan, Hong Kong. [4]
| Country | Revenue | Profits | Assets | Employees |
|---|---|---|---|---|
| Country 1 | Revenue 1 | Profit 1 | Assets 1 | Employees 1 |
| Country 2 | Revenue 2 | Profit 2 | Assets 2 | Employees 2 |
| Country 3 | Revenue 3 | Profit 3 | Assets 3 | Employees 3 |
| Country 4 | Revenue 4 | Profit 4 | Assets 4 | Employees 4 |
Governance
Executives
- Giorgio Armani, chairman, president,and CEO
- Robert Triefus, EVP worldwide communications
- John Hooks, Director group commercial and marketing
Board members & affiliations
Executive director/compensation Date and venue of next AGM
Contact Information
Via Borgonuovo 11
20121 Milan
Italy
Tel.: +39-02-723-18-1
Fax: +39-02-723-18-450
Web site: http://www.giorgioarmani.com
Articles and Resources
Books on the Company
Molho, Renata. 2006 Essere Armani: una biografia Milan: Baldini Castoldi Dalai.
Armani, Giorgio, Harold Koda, Germano Celant, Susan Cross, Kareole Vail (eds.). 2003. Giorgio Armani Guggenheim Museum.
