GIORGIO ARMANI THE FASHION DESIGNER

Fashion designer Giorgio Armani walks on the beach during a vacation in St Barts.

The Past and the Present
Fashion Designer Giorgio Armani was born on July 11, 1934, in Piacenza, about 50 miles south of Milan, in the Emilia-Romagna region of Italy. He attended medical school for two years, dabbled in photography, fulfilled his military obligations in 1957, then worked in a prestigious department store, La Rinascente, as a window dresser. He joined Nino Cerruti as a designer from 1961 to 1970. Armani began a free-lance design business in 1970 with the encouragement of his close friend Sergio Galeotti, and established his own men's wear label in 1974. He gradually adapted his designs for women and added a women's wear line in 1975, in partnership with Galeotti (who passed away in 1985). His sister Rosanna Armani teamed up with Armani as head of communication activities of the company (our picture shows Giorgio Armani with his sister).

Armani, whose relaxed designs for women are inspired by men's wear, also uses men's wear fabrics in his sophisticated, unstructured jackets and suits for women. With this approach, Armani has established a new standard of understated elegance: easy-fit garments for women, precisely cut and beautifully tailored.

He is known as a workaholic, who can sometimes be rude and arrogant. His dislike of fellow Italian designers Gianni Versace and Valentino has recently been supressed for the benefit of the international press. In May, 1996, Armani was convicted of corruption in Italy, among other fellow designers like Ferre.

Armani has homes in Broni, Forte dei Marmi, and Pantelleria (Italy), and in St. Tropez (French Riviera).
------------------------------------------------------------------------

Selected Lines

* Armani Alta Moda (haute couture)
* Borgonuovo 21
* Giorgio Armani
* Le Collezioni (diffusion), since 1979
* Mani (diffusion)
* Emporio Armani (diffusion, younger customer, worldwide), since 1984
* A/X Armani Exchange (basics, United States only)
* Giorgio Armani U.S.A. (lower priced)
* Armani Jeans
* Armani Neve (winter sportswear), since 1996
* Armani Golf (sportswear), since 1996
* Classico, since 1996
------------------------------------------------------------------------

Selected Awards and Recognitions

* Neiman-Marcus Award (1979)
* CFDA International Award (1983)
* The semi-annual Italian men's fashion trade show Pitti Uomo in Florence celebrated in Summer 1996 its 50th fair with a magnificent fashion show called "G.A.Story" portaying the life and work of Giorgio Armani. The show concept was developed by well-known opera-director Robert Wilson.
------------------------------------------------------------------------

Economic Data
Performance
Sales of the Armani-Group in 1994 amounted to 1270 billion Lira ($787 million), up 12.4% from 1993. Garments accounted for about 850 billion Lira ($527 million), and accessories for about 420 billion Lira ($260 million). In 1996, the group sales, including sales from licensed products rose to about 2000 billion Lira ($1.3 billion). The Armani-Group also includes the sportswear company Simint, which handles all of Armani's informal lines. Armani himself holds 53% of the Simint assets. Simint was rated the best perfoming stock at the Milan exchange, with an annual increase of 219% with respect to the stock price. While Simint produces the Armani Jeans line, the Armani Junior label and the Emporio Armani men's wear, the Emporio women's clothes are produced by the Antinea (sales in 1996: 150 billion Lira), a 100% Armani offspring. Giorgio Armani S.p.A. develops the Armani labels. In 1993, Giorgio Armani S.p.A. showed a 30% growth in sales to 695 billion Lira ($442 million), thus doubling its sales figures of 1990. Two years later sales were at 960 billon Lira ($590 million), increasing another 25% to 1200 billion Lira ($778 million) in 1996. Pre-tax profits for the Giorgio Armani S.p.A. marked 325 billion Lira ($211 million).

Distribution
The biggest export market for Armani is the United States, where Armani labels are sold at 12,000 points of sale. In 1995, Armani had 36 outlets carrying the exclusive Giorgio Armani and Borgonuovo-21 lines. Emporio Armani outlets numbered 119 in 1995, with 54 in Italy and 22 in Japan. This figure rose to 121 stores in 1997 and is planned to be increased by 8 in the near future. A/X Armani Exchange used to be sold only in the United States. In 1994, the A/X-stores were taken over by Club 21 USA, Inc., but continuesly struggled to compete with lower-priced competitors like Banana Republic. Today, Armani intends to open up even more A/X-outlets, also introducing them to customers in Asia for the first time.

Production/ Licenses
The main Armani lines are produced by Italy's largest manufacturer of designer garments, Gruppo GFT. Armani garments account for about 30% of GFT sales and are therefore GFT's most important license. In 1994, Armani tried to take over GFT with the help of American investors, presumably to help out Armani's sportswear affiliate, Simint, which had gotten into financial trouble at the time. Simint is now recovering, after cutting its staff, changing its distribution structure, and concentrating its production in Italy. An economic turnaround could be achieved, which resulted in 1995/1996 in sales of 255 billion Lira ($160 million) and turning a loss of 24 billion Lira ($16 million) in the previous year to a net profit 5.4 billion Lira ($3.5 million). Sales for the fiscal year 1996/1997 are expected to be 180 billion Lira ($117 million). Armani is said to be interested in expanding his own production capabilities. For that purpose, Armani is expected either to shift the production of his main lines from GFT to Simint or Antinea or he might take over stock from GFT, who are expected to make such an offer in order to keep their most profitable client.

In late 1996, Armani announced that from now on clothing under the Armani Jeans-label will heed to tight environmental standards, introducing a range of clothing items which will be made out of hamp.

Among the Armani accessories, the eye-wear collection appears to enjoy continuous success. The Armani glasses are produced since 1988 by the Italian designer eye-wear specialist Luxottica and exclusively sold in eye-wear speciality stores and Armani boutiques.

Distribution
Armani wants to expand the number of his stores significantly. Most visibly, he opened up two huge flagship stores in New York City on Madision Avenue, one for the top line and one for Emporio Armani. Armani seemingly pursues the establishment of a lifestyle brand "Armani". This movement is refelcted in the various attempts to offer a wide variety of products under the Armani-label. Such as the in 1996 introduced Armani Neve winter sportswear line, the Armani Golf sportswear line (both produced previously by Skinea and now by Simint), and the introduction of custom-made bridal gowns, as part of the Borgonuovo-21 line. Also, Classico, a new luxurious and costly line for men and women will be introduced. Here, Armani wants to offer modern interpretations of classic designs. In addition, Armani sells a wide range of home accessories under the Emporio Armani-label. In 1997, the first Armani Jeans store in Rome, Italy also included a Armani book shop, selling publications about various artistic subjects, like fashion and photography.

The company licenses its name for perfume, watches, and accessories, but apparel still accounts for more than half of revenues. Armani's retail empire spans more than 35 countries and includes nearly 280 stores. Armani owns Simint, the Italian holder of the Armani jeans license, and is 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.
------------------------------------------------------------------------

Address
Headquarters
Giorgio Armani S.p.A.
Via Borgonuovo, 21
20121 Milan, Italy
Tel.: (+02) 80-14-81
FAX.: (+02) 46-46-19-14 Press & Public Relations
Via Borgonuovo, 24
20121 Milan, Italy
Tel.: (+02) 29-09-31
FAX.: (+02) 65-47-77
------------------------------------------------------------------------

Selected Boutiques
Paris Boutique
6 place Vend™me, 1er
75001 Paris, France London Boutique
37-42 Sloane Street
London SW1, Great Britain
Tel.: (+44) 0171/234 6232
New York Boutique
760, Madison Avenue
New York, N.Y., U.S.A. Milan Boutiques
* Via Sant'Andrea, 9
20121 Milan, Italy
Tel.: (+02) 76022757
* Via Durini, 24
20121 Milan, Italy
Tel.: (+02) 7603030
* Via Durini, 27 (Armani Junior)
20121 Milan, Italy
Tel.: (+02) 794248