Italy’s Armani Group said on Thursday its sales jumped 18 percent in the first quarter thanks to a rebound in Asia and more modest growth in the United States, where a slowdown is expected in the coming months.

The privately-owned luxury group added that its 2022 full-year revenues were up 16.5 percent to 2.35 billion euros ($2.59 billion), boosted by sales in Europe and the United States, while Asia showed a decline due to Covid-19-related restrictions.

Retail and wholesale channels both contributed in a similar way to the revenues growth.

The Milan-based group’s operating profit rose 30 percent in 2022, to 202.5 million euros.

The group said the good momentum of 2022 has continued into the first quarter of this year, which was boosted by a 14 percent sales increase in Asia.

“Europe continues its positive trend (+22 percent), as does — albeit more modestly — America (+10 percent), 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.

Luxury stocks in Europe fell this week amid growing concerns over a slowdown in luxury demand in the United States.

“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 group added that the “adjustment period” that followed the decision to reorganise the company’s portfolio around its three main brands, namely Giorgio Armani, Emporio Armani, and Armani Exchange, had concluded.

By Elisa Anzolin; Editors Alvise Armellini, Alexandra Hudson

Learn more:

Giorgio Armani to Stage Couture Show During Venice Film Festival

Armani Privé, the Italian designer’s haute couture line, will present its next collection on September 2 at the Venetian Arsenal before hosting a party to “celebrate cinema and to pay tribute to the city that most symbolises it,” the brand said in a statement.