Corporate Credit Rating for GIORGIO ARMANI S.P.A.: A3+ (Affirm)

Press release 29 October 2019

Corporate Credit Rating (Unsolicited) for GIORGIO ARMANI S.P.A.: A3+ (Affirm)

modefinance published on its CRA website the Corporate Credit Rating (Affirm) of GIORGIO ARMANI S.P.A., reviewed after the publication of 2018 financialstatements. modefinance confirms the rating previously assigned to the entity, equal to A3+.

The Company has confirmed its high capability to meet its financial obligations. The Company is highly capitalized, which ensures low dependence on possible adverse macroeconomic conditions.

Reason behind the review: publication of 2018 consolidated accounts.

Key Rating Assumptions

The reasons that have driven this evaluation are:

  • The overall financial and economic situation of Giorgio Armani S.p.A. in 2018 was good. The Company confirmed its excellent condition of solvency and its adequate condition of liquidity, but registered a contraction in profitability, due to a rationalization of Group’s portfolio of lines. Main profitability indicators remained by the way on sufficient levels.
  • Comparing Giorgio Armani S.p.A. with its peer group, it emerges that the Italian fashion house is well positioned in terms of turnover and presents an excellent condition of solvency, but performs poorly in terms of profitability.
  • Giorgio Armani S.p.A. is a long-established company, being funded in 1975, and a solid international group, which comprehends 14 subsidiaries and 531 directly managed stores all over the world, with a total of 8,206 employees. It does not present black records.
  • The GUO of Giorgio Armani S.p.A. is Mr. Giorgio Armani. Despite being almost entirely family managed, the Company has so far been well managed. The group is solid since most of the Group’s subsidiaries have a good level of creditworthiness. The establishment of Fondazione Giorgio Armani was aimed at securing the future of the Group.
  • Giorgio Armani S.p.A. confirmed its solid condition of solvency and liquidity, overperforming the peer group. As for profitability, Company’s figures were below the sector’s median, although remaining sufficient.
  • All the main areas where Giorgio Armani S.p.A. operates (Europe, North America and Asia-Pacific), showed a slowdown in 2018 compared to 2017, and current forecasts of 2019 confirm this trend. The global situation remains uncertain.
  • Global trade tensions (as the significant tariff increases between USA and China) are intensifying, the slowdown of Chinese economy and the uncertain outcome of Brexit on European trade might affect negatively the Company.


The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is unsolicited: the rated entity and/or related third parties have not participated in the rating process and modefinance has no access to accounts or other relevant internal documents of the rated entity and/or related third parties.

Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available here

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0.

A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available here

For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance however is not in a position to guarantee the accuracy of those information. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.

The Rated Entity or Related Third Party has not purchased ancillary services from modefinance. The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.


Andrea Marion - Head Analyst
+39 040 3756740

Chiara Di Piazza - Assistant Analyst
+39 040 3756742

Pinar Dilek - Responsible for Rating Approval
+39 040 3756740