Designer Giorgio Armani, the sole shareholder of his eponymous, 41-year-old Italian fashion house, is streamlining the far-reaching company, in reaction to sales falling for a third year. Revenue dropped 8% at constant exchange rates to 2.1 billion euros ($2.3 billion) in 2018, Armani said in a statement Friday. Net profit slipped by more than half as the company increased spending and licensing income declined.

Armani is forecasting a return to growth next year, after regrouping its various sub-brands under three main lines—a process that will see mid-price department-store labels like Armani Jeans and Armani Collezioni phased out. Net cash rose to 1.3 billion euros ($1.45 billion), meaning the company has significant resources to invest in relaunching the brand.