The Armani Group of Italy reported on Thursday that its first-quarter sales increased 18% as a result of a recovery in Asia and less robust growth in the United States, where a recession is anticipated in the near future.

The privately held luxury firm also stated that its full-year 2022 revenues increased by 16.5% to 2.35 billion euros ($2.59 billion), driven by sales in Europe and the United States, while Asia experienced a dip because of COVID-related restrictions.

Both the retail and wholesale channels equally contributed to the increase in revenues.

Operating income for the Milan-based company increased by 30% to 202.5 million euros in 2022.

The group claimed that 2022’s positive momentum carried over into the first quarter of this year, helped along by a 14% increase in sales in Asia.

“Europe continues its positive trend (+22%), as does – albeit more modestly – America (+10%), where the coming months are expected to bring a slowdown, hopefully to be offset by the positive trend in Asia”, the group said, referring to the January-March period.

This week, luxury stocks slumped in Europe as worries about a downturn in American demand for luxury goods grew.

“In an increasingly difficult and competitive context, I am proud to have been able to maintain my independence and the stability of the group” Chairman and Chief Executive Giorgio Armani said.

The Italian corporation also stated that the “adjustment period” after the choice to restructure the company’s portfolio around its three primary brands, Giorgio Armani, Emporio Armani, and Armani Exchange, had come to an end.

(Adapted from Reuters.com)