Written by: Miloš Stevanović

An unexpected turn in the legacy of the “King Giorgio.” The passing of Giorgio Armani at the age of 91 brought a surprise to the fashion industry – his testamentary instruction actually opens the door to the sale of the family empire that he had guarded as independent for decades. According to the contents of the will, Armani ordered that within 18 months of his death, an initial 15% stake of the fashion house be sold, primarily to one of three selected companies: luxury conglomerate LVMH, cosmetics giant L’Oréal, or eyewear industry leader EssilorLuxottica. These three groups Armani personally named as desirable strategic partners for his firm, a move that surprised many admirers of the brand. Even bolder, the will foresees that in the period from 3 to 5 years after the first sale, an additional 30% to 54.9% of the company be sold to the same buyer, thus granting that partner a majority stake. Alternatively, if such a strategic buyer is not found, the possibility of going public (IPO) after three years from the opening of the inheritance, and at the latest within eight years, was left. For a fashion house that consciously avoided external investors for fifty years, this shift represents an almost dramatic change of course. Armani, who during his life persistently refused takeover offers and stock listings, is posthumously projecting his company into a new era – with clearly defined conditions in order to preserve its identity and legacy.

The foundation as the guardian of the brand’s independence.
A key element of Armani’s succession plan is the Giorgio Armani Foundation, which the designer founded in 2016 with the aim of preserving the values and continuity of the company. According to the will, the Foundation now inherits 100% ownership of the fashion house, but with an unusual management structure: the Foundation directly holds only about 10% of the shares with full rights, while the remaining ~90% is “bare ownership” where voting rights are transferred to closest associates and family. Pantaleo (Leo) Dell’Orco, Armani’s longtime partner in business and life, received 40% of the voting rights, while nephew Andrea Camerana and nephew Silvana Armani each received 15%. In this way it was ensured that precisely those who know the brand’s vision best hold managerial control, and together with the Foundation have about 70% of the voting power. What is particularly significant is the provision that the Foundation must retain at least 30% of the company’s capital – whether in the case of a sale, or in the event of an IPO. This is intended for the Foundation to be a permanent guarantor of the original Armani spirit and principles in the future ownership arrangement. As the company’s executive committee stated: “The Foundation… will never have less than 30% of the capital, acting as a permanent guarantor of compliance with the founder’s principles.” In other words, although the possibility opens that Armani becomes part of a larger system, the core of the company remains dedicated to preserving the independence of the brand’s spirit. The Foundation will also have the task of appointing a new CEO and proposing a successor for the role of creative leader, thereby continuing the mission that the transition goes smoothly. In the meantime, in the short and medium term, all key decisions remain in the circle of family and closest associates, with the support of the Foundation, which guarantees that there will be no sudden upheavals in business immediately after the founder’s death.

Model on the Emporio Armani runway – a brand that for decades has built a recognizable style of refined simplicity. Armani developed a wide spectrum of products from high fashion to eyewear and perfumes, so it is no surprise that among the potential buyers are L’Oréal (cosmetics) and EssilorLuxottica (eyewear), who already have license agreements with Armani.

Who are Armani’s “guardian angels”: LVMH, L’Oréal and Luxottica.
Why did Armani in his will name precisely these companies as desirable partners? First of all, they are leaders in their fields, each with special ties or complementary strengths in relation to the Armani brand. LVMH (Moët Hennessy Louis Vuitton) is the world’s largest luxury conglomerate, led by Bernard Arnault, and for years there were rumors that Arnault could attempt to add Armani to his treasury of prestigious brands. In a sign of respect, Arnault immediately stated that Giorgio Armani “honors him with trust” by naming him as a possible partner, and emphasized that LVMH, if cooperation occurs, would be dedicated to further strengthening Armani’s global position. Strategically speaking, LVMH indeed has much to offer: from a global retail network and marketing resources, to experience in turning luxury brands into multimillion-dollar forces. Armani, although globally known, has room for growth especially in the leather goods and accessories segment – a domain where LVMH is unrivaled. Some analysts already assess that LVMH would be the most rationally interested to grab Armani, considering the strategic fit of the brand in their portfolio and the financial power of the group to carry it out. Still, it is worth noting that integration into LVMH would likely bring profound changes – in line with Arnault’s practice of restructuring brands and focusing on the most profitable segments. In Armani’s case, that could mean cutting some more affordable lines (e.g. Armani Exchange or parts of the Emporio line) and stronger positioning in high luxury, which is an expensive and delicate undertaking in today’s slowed luxury market.

In contrast to LVMH, L’Oréal and EssilorLuxottica enter the story from a different angle – as longtime partners of Armani in specific sectors. L’Oréal has for decades produced and distributed the Armani Beauty line (perfumes and cosmetics) under license, and that contract is extended until 2050. Armani perfumes and makeup are globally successful, so L’Oréal has more than a business interest in keeping the brand strong and relevant. The inclusion of L’Oréal among priority buyers suggests that Armani recognized that symbiotic connection: L’Oréal as the owner of the fashion part of the brand could ensure the unity of vision between the fashion and beauty lines. The truth is, L’Oréal is primarily a cosmetics company and until now has not managed a large fashion brand (only recently they acquired the smaller fashion house Mugler), but precisely for that reason, in the industry a parallel is drawn with the move of Estée Lauder regarding Tom Ford – Estée Lauder bought his perfume business, while the fashion activity was handed over to a partner firm (Zegna). Similarly, if L’Oréal takes over Armani, it would likely find a way to secure fashion expertise (perhaps through retaining the existing Armani team or a partnership), while exploiting the full potential of the brand in the beauty world it already knows excellently.

EssilorLuxottica, created by the merger of French Essilor and Italian Luxottica, is the global giant in eyewear production – and the only one of the three mentioned companies with Italian roots. It is no secret that Armani collaborated closely with Luxottica for years: their Armani eyewear has been part of the Luxottica portfolio since 1988, and the current license agreement lasts until 2037. Also, Luxottica founder Leonardo Del Vecchio was Armani’s personal friend, which explains the emotional component of the choice – Armani wanted among potential owners to be a “domestic” champion who understands the Italian spirit of the brand. EssilorLuxottica was the first to publicly react to the will, saying that they are “proud of the trust that Mr. Armani has shown” and that they will carefully consider this possibility of developing the relationship. For Luxottica, investing in Armani’s fashion house would also be strategic insurance – ensuring that the brand whose name their eyewear carries remains strong and innovative. Although EssilorLuxottica has not so far taken over fashion brands, its financial capacity and existing commercial interests in the Armani empire make it a natural candidate on which the designer counted. It is important to add that Armani left the possibility for “other groups of equal renown” to also be considered, if they have existing partnership ties with his house. In this way, the circle of prospective buyers is more broadly defined (in theory, other luxury conglomerates such as Kering or investment houses such as Exor, with whom Armani earlier negotiated, could be included), but the Foundation and Dell’Orco will have the final say to ensure that any alliance be in the spirit of Armani’s legacy.

The Armani brand: synonym for timeless elegance and autonomy.
While the race of potential buyers heats up, it is worth recalling what the Armani brand represents and why its independence was unquestioned for so long. Since the mid-1970s, Giorgio Armani built the image of the fashion house on the foundations of sophisticated simplicity and refinement. His revisionist vision of men’s clothing – the soft, unstructured jacket instead of the rigid cut – practically defined business fashion of the 1980s, while his glamorous yet restrained dresses ruled Hollywood red carpets. The Armani brand became a globally recognized symbol of Italian luxury, expanding over time beyond fashion: to hotels, restaurants, interiors, even chocolates. Despite that growth, Armani for decades refused to “stand under someone else’s umbrella.” Independence, as he himself said, was a “core value” of his work. It is known that he personally controlled both the creative and business reins of the company until the very last day, and that he repeatedly rejected courtship from the largest fashion groups. Already in the 1990s Gucci allegedly approached with offers, as did investment bankers with IPO ideas, but Armani remained unyielding. The Italian fashion scene regarded him as a guardian of national pride, one of the few remaining great designers (like Versace, Prada or Missoni) who did not sell their businesses to foreign corporations. That status earned him the nickname “King Giorgio” and the reputation of a figure who singlehandedly built an empire estimated at 5–7 billion euros in value.

However, times have changed, and Giorgio Armani himself realized that at the end of his life. Just before his 90th birthday, for the first time he publicly opened the door to the possibility that his brand one day enter a larger system or the stock market. “Independence can remain a leading value, but I don’t want to exclude anything. The key to my success was that I knew how to adapt to changing times,” Armani said in April 2024. This statement – surprising for someone who for decades fiercely defended autonomy – shows how much contemporary market challenges influenced his thinking. Because although the brand is still famous, business numbers indicated the need for change: last year’s sales of ~2.3 billion euros barely grew, and operating profit fell to only about 3% of revenue. In such a context, maintaining a completely separate position became harder than ever – especially while giants like LVMH and Kering are swallowing luxury houses and imposing new standards of investment in brands. Armani clearly wanted to prevent a scenario in which his company after his death would be weakened or, even worse, grabbed apart without a clear plan. Instead, he crafted a solution that balances two imperatives: preserving the brand’s identity and ensuring long-term future through partnership.

Sale as temptation – and opportunity.
The possible entry of a strategic partner or investor into Armani certainly raises the question: what impact will that have on the image and creative direction of such an authentic brand? The answer will depend on who becomes the majority owner and how that cooperation will look. The LVMH scenario would mean integration into the world’s largest luxury family. That carries many benefits – financial injection, access to top artisans, marketing machinery and global boutique network. With LVMH’s support, Armani could more quickly renew its boutiques, strengthen its presence in segments where it is currently weaker (e.g. luxury leather accessories or haute couture), and attract a new generation of consumers. On the other hand, the long-term image of the brand could undergo transformation: LVMH would almost certainly redefine the portfolio of lines, likely reducing the offer of more affordable fashion to raise the perception of exclusivity. Armani, which today ranges from top Giorgio Armani line to democratized A|X Armani Exchange, under LVMH’s umbrella would likely become focused solely on the luxury segment. Such a “return to elitism” could renew the aura of prestige around the Armani name, but carries the risk of alienating part of the existing clientele that loved the brand for its broader range of offerings. Also, emotionally, for Italy that would mean another of its famous brands passes into French hands, which some could perceive as the end of an era of Italian fashion independence – although it must be admitted that Armani is a global brand and that for a new rise it needs a global partner.

In the case that L’Oréal takes a majority stake, the effects would be of a different nature. As L’Oréal has no experience directly managing a fashion house of that size, it would likely seek to preserve continuity of the existing management and keep the creative team together. Given the license relationship they already have, the fashion and beauty side of Armani could be even more strongly connected – campaigns and products would be more aligned under one roof. It is possible that L’Oréal would seek partnership (similar to Estée Lauder with Zegna) for managing the fashion activity, which means that Armani as a fashion brand would retain considerable autonomy in creating collections, with financial support and synergy with the beauty sector. For consumers, such a development might not even be visibly dramatic at first: stores, shows and style could continue in the familiar tone, at least until a new strategy gradually crystallizes. Long-term, with L’Oréal’s resources, Armani might innovate more quickly in areas like fragrances, makeup and skincare – where the brand already shines – while the fashion vision would remain faithful to the foundations Giorgio set, albeit needing market revitalization to keep pace with faster rivals.

If EssilorLuxottica became the owner, Armani would get a partner who shares Italian heritage and knows one segment of his business well – eyewear. Such an owner would probably not significantly interfere in the creative direction of fashion collections, at least not immediately, since optics is not fashion textiles. Instead, Luxottica as a majority shareholder could invest in stability and gradual growth, keeping the brand together while perhaps engaging experts or smaller fashion partners for managing the apparel business. In the eyes of the public, this option would probably look closest to the current state – Armani would still remain largely an independent fashion entity, only with deeper pockets behind it. Italian public might welcome it most warmly, because “their” Armani would remain under the wing of a company that comes from the same country (even though EssilorLuxottica is formally multinational with a French element). Still, the question remains whether such an arrangement would allow the brand the leap it needs in terms of design innovation and digital transformation – areas where larger fashion groups currently lead.

There is, of course, also the option of a public stock offering, if for some reason an agreement with the mentioned partners is not reached. As an independent public company, Giorgio Armani S.p.A. would have to balance between preserving its luxury image and satisfying shareholders hungry for growth and profit. Such a challenge is already being tested by some rival houses – for example, Burberry on the stock exchange often goes through cycles of strategy changes in search of the right balance of creative and commercial. Armani with its 30% in the hands of the Foundation would have certain protection from hostile takeovers and too much pressure from quarterly results, but still entry to the stock market would mean a new dynamic of accountability. No wonder that Armani himself in the company’s statute foresaw that IPO cannot happen immediately, but only a few years after his death – practically leaving time to try to find an ideal strategic partner before resorting to the capital market.

Conclusion: legacy under new spotlights.
As shocking as it may first seem that a defender of independence like Armani prepared the ground for the sale of his life’s work, deeper analysis reveals a thoughtful intention behind that move. Armani strategically orchestrated the transition of his brand into the future, seeking to combine the best of both worlds – to ensure that Armani continues to live and grow after him, but also that it does so while preserving the values on which it was built. The brand will need an injection of fresh energy, capital and perhaps corporate infrastructure to compete with today’s mega-brands, but at the same time the Foundation and heirs will watch that Armani’s “DNA” is not lost in the process.

Will a “battle for Armani” in the end materialize, where LVMH, L’Oréal and EssilorLuxottica (or a fourth party) compete for this jewel – remains to be seen. The companies have already signaled openness: Arnault expressed honor, L’Oréal is “studying the possibilities,” and EssilorLuxottica, as we said, proudly considers the offer. The price of independence in fashion has never been a bigger topic: Armani left us the lesson that independence does not have to mean stagnation, nor does selling have to mean betrayal of principles. Everything will depend on how that balance is executed. If the chosen partner respects the spirit of the brand – that unique blend of elegance, Italian culture and restrained luxury – Armani could flourish in a new environment, just as its founder knew how to adapt to new times. Conversely, a careless approach could diminish the shine of a name that for fifty years was a symbol of quality. Fortunately, Armani in his will set guardians precisely to prevent the latter scenario. The fashion world will now with great interest follow this business-cultural epilogue: how the legendary identity of an independent brand will merge with the realities of the global luxury industry – and whether “King Giorgio” even after life will manage to keep control over the destiny of his empire, at least through the hands of those to whom he entrusted his vision.

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