Giorgio Armani’s will outlines plans to sell a stake in his closely held fashion house to a major luxury firm, setting in motion a process that will eventually see the Italian brand folded into a larger group.
The document, which was made public Friday (Sept 12), sets conditions for the Armani foundation to sell an initial stake of 15% of the fashion house to LVMH Moet Hennessy Louis Vuitton SE, EssilorLuxottica, L’Oreal SA or another company of similar standing within 18 months, according to a copy of the document obtained by Bloomberg News.
Armani also said that the group which will buy the initial stake could eventually increase it up to 54.9% after three years from the succession, paving the way of a take over of the luxury group he founded.
Read more: A final bow: Milan honours fashion designer Giorgio Armani with love and style
The late designer left his closely held Giorgio Armani SpA to his foundation, family members and partner Leo Dell’Orco.
A key role will for now be played by Dell’Orco, Armani’s partner whom the Italian mogul referred to as his "right hand man”. His heirs will now decide which main group could buy the majority of the fashion house.
Under Armani, the company managed to remain independent and, by all signs, financially healthy, but it has struggled with revenue growth.
His death earlier this month comes at a fraught time for the luxury goods industry, which has been hit with rising tariffs and a post-pandemic drop-off in demand.
In an April 2024 interview with Bloomberg News, Armani said he didn’t want to rule out any possibilities for the future, saying that it would be up to his heirs to evaluate opportunities that arose in the future.
Read more: Giorgio Armani has passed, but what about the fashion empire he left behind?
While independence could still drive value for Armani, "what has always characterised the success of my work is an ability to adapt to changing times”.
Armani has had mixed results navigating shifts in consumer habits: perfumes like Acqua Di Gio, licensed to L’Oreal SA, have fared well in a world now dominated by online sales.
Classically elegant men’s tailoring, a hallmark of Armani in its heyday, has been a less reliable bet in today’s more casual milieu. – Bloomberg
