The world’s most expensive luxury goods company has reported a record-breaking fourth quarter, after an unexpected surge in sales.
Armanis’ shares surged by 30 per cent on Friday to reach a record $50.6bn, after the company posted a $1.7bn profit in the fourth quarter of last year.
The company reported its second consecutive record quarter in the US, with sales of $3.5bn.
Sales rose 14 per cent to $10.6 billion.
The majority of the rise was attributed to Armanas US sales growth, which saw revenue jump 52 per cent from a year ago.
Armana has made a strong showing in the global luxury goods market, which has been the biggest growth sector for the company.
Armenia, the largest producer of diamond and gemstones, had the fastest growth of any country, with a 13.5 per cent growth.
The rest of the world’s growth was led by China, Japan, Germany and South Korea.
The company had a record third-quarter profit of $1bn, thanks to strong revenue growth and lower costs.
Armans market value, based on the company’s share price, has been growing steadily for years.
In its most recent earnings report, Armania reported that it earned $2.9bn last year, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6 per cent, from $2bn to $3bn.
The growth in revenues was attributed in part to a strong expansion of the company in Asia.
In addition to China, Armans sales rose in Singapore, Japan and Hong Kong, while sales in India and Brazil were also on strong growth.
In the fourth-quarter, Armania posted an operating profit of nearly $1m.
It reported a loss of $700m in the first half of last season, due to the global financial crisis.
The third-half profit, $3m, was mostly due to higher production costs.
Aronias profit in 2016 was $5.9m, after a profit of about $1 billion in the previous year.
The new report shows that Armanes revenues are up more than 60 per cent compared with the same period last year to $7.3bn, while EBITDA, the companys main metric, is up nearly 50 per cent.
The increase in EBITDB was driven by Armanat’s growing presence in emerging markets and its entry into the US market.
The global market for luxury goods has seen an upsurge in the past few years, especially in China.
China is a major market for Armanais, with demand for its jewellery and diamond jewellery, and in the last two years the company has become increasingly important in emerging economies.
The world’s largest diamond producer, the Chinese government is also investing heavily in the diamond industry, particularly in India, where its diamond market is expected to grow by $1tn in the next five years.