Net revenue at Armani fell 7% at actual exchange rates to €2.3bn (£2.04bn) in 2017.
At constant exchange rates the revenue drop was lower at 5.8%.
Gross operating profit fell 5.4% compared with 2016 to €438m (£390m). Net cash stood at an all-time high of €1bn (£898m).
The Italian fashion group said the decline in net revenues and margins was expected, as a result of a strategic reorganisation of the business.
In February 2017 Armani Group announced plans to focus on Giorgio Armani, Emporio Armani and Armani Exchange, and integrate Armani Collezioni and Armani Jeans into its Emporio Armani and Armani Exchange lines.
The group expects to be back in growth in 2020.