Armani Doubles Stake in A/X Exchange to 50 Percent

Giorgio Armani has doubled his stake in A/X Armani Exchange, in a move that underlines his unshaken confidence in his own brand name.

Armani doubled his interest by buying a new 25 percent stake in the three-year-old joint venture from Como Holdings, his original partner in the youth orientated, fashion forward collection.

Terms of the acquisition were not released, but in a statement heralding the deal, Armani revealed that global A/X revenues should hit $520 million in 2008, compared with worldwide revenues of $ 298.5 million in 2005, i.e. a 74 percent increase.

In a flurry of expansion, A/X opened 75 new stores in the last three years, bringing its international chain to a total of 165 in 24 countries.

The designer actually bought the new stake in Presidio Holdings Ltd., the joint venture company that controls A/X. Presidio has held the license for the manufacture and distribution of the A/X collection since 1994, though this business was initially restricted to North America.

However, since 2005, when Armani bought his first 25 percent stake in the joint venture, A/X has expanded aggressively, opening new markets in Japan, China, the United Kingdom, the Middle East and Central and South America.

"The formation of a joint venture company gave a fresh impetus for the expansion of A/X Armani Exchange not only in new markets around the world but also in new product categories. Fast fashion is a young and dynamic segment of the market, which I find particularly stimulating when designing my collections,” Armani said in the release.

“I have always believed that A/X Armani Exchange has the potential to become one of the world's strongest youth fashion brands,” the septuagenarian designer added.

Brushing aside what he conceded was the “worrying general economic situation,” Armani stressed that he and his partners “are determined, as a group, to proceed with our strategic development.”

Besides acquiring this fresh 25 percent in Presidio Holdings Ltd, as was originally planned over three years ago, Armani highlighted his ambitious opening plans for 2009, including the new concept store, Armani / 5th Avenue in New York in February and important new Giorgio Armani flagship stores in Tokyo, Singapore and Doha.

"Thanks to the formation of the joint venture company we have been able to capitalise on the experience and talents gathered over the past fourteen years and bring this dynamic brand to new markets,” stressed Armani’s A/X partner, Christina Ong, principal shareholder in Como Holdings.

“The strength of the A/X Armani Exchange brand has allowed us to expand into accessories, fragrances, eyewear and watches,” continued Ong, a Singapore-based fashion and hotel tycoon married to Ong Beng Seng, the oil magnate.

The Giorgio Armani Group employs 5,000 people and owns 13 factories. Besides a stack of fashion collection, including Giorgio Armani Prive, Giorgio Armani, Emporio Armani, Armani Collezioni, Armani Jeans, Armani Junior and Armani Baby, the group also boasts a substantial interior decor business in Armani Casa, for a global retail network of some 500 stores.

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