It opened new stores for different lines, including an Armani Exchange location in New York City and Armani Collezioni stores in Milan, London and Tokyo.

WSJ: The Future of Armani

Another concern is that as the company has added new lines such as Armani Jeans, AX and Armani Collezioni it has become harder to keep their identities distinct.

WSJ: The Future of Armani

But rising labor costs have forced the apparel maker for Armani Collezioni, John Varvatos and Hugo Boss to focus on what it does best: helping clients develop clothing while the company outsources a growing part of production.

WSJ: China Manufacturers Survive by Moving to Asian Neighbors