Armani to kick off stake sale talks with LVMH and L’Oréal
Fashion company to meet French groups and EssilorLuxottica in accordance with wishes of late founder Giorgio Armani
Armani is poised to kick off formal talks with the three potential investors anointed in the will of Giorgio Armani as it thrashes out a new strategy without the designer who kept an iron grip on the business for fifty years.
In the coming weeks Armani is scheduled to hold meetings with LVMH, beauty giant L’Oréal and eyewear group EssilorLuxottica over a possible sale of a minority stake, according to people familiar with the matter.
After fiercely guarding the independence of the Italian group for decades, Armani shocked the luxury industry a year ago by instructing his heirs to sell an initial 15 per cent stake within 18 months of his death.
However, people close to the trio of preferred suitors played down the chances of their making a substantial investment in the short term in a group with interests spanning fashion, haute couture, hotels, restaurants and home furnishings.
One option that has been discussed informally with Armani would see a 15 per cent stake divided among LVMH, L’Oréal and EssilorLuxottica, according to four people familiar with the matter.
“No one wants to jump on it but no one wants to let it pass. This way everyone gets to be around the table,” said one person close to the situation.
Armani retained tight control over the creative and commercial sides of the operation until shortly before his death last September. His passing, at the age of 91, plunged his business into a challenge familiar to many of Italy’s founder-led companies: turning a company built in the image of one individual into an institution capable of thriving without them.
Company veteran Giuseppe Marsocci was promoted to chief executive a month after Armani’s death. He has since been developing a new strategy with assistance from Boston Consulting Group. The aim of the work, according to people familiar with the project, is to refine the positioning of the group’s brands and devise ways of expanding in higher-margin categories like accessories.
The group’s family-heavy board, which Armani chaired, has been overhauled with the appointment of outsiders including former Gucci chief Marco Bizzarri and Yoox founder Federico Marchetti. Longtime company executive Leo Dell’Orco has been elevated to chair.
People close to Armani’s executives said they are also planning to streamline the structure of the group, which owns the Giorgio Armani and Emporio Armani brands, haute couture line Armani Privé, as well as hotels, restaurants and home furnishings.
On the creative front, the group this month appointed Dario Vitale, one of Italy’s most acclaimed designers, to reinvigorate the Emporio Armani brand, which accounts for almost a third of the group’s €2.2bn annual revenue.
His brief is to refresh Emporio — conceived as Armani’s younger, more experimental line — and give it a clearer identity.
“Emporio is where you can see most clearly what they are trying to do with the company,” said one person who has worked with the company. “They need to make it younger, clearer and more relevant but without losing what makes it Armani.”
Vitale, who was hired on the back of his success drawing younger luxury consumers to Prada-owned label Miu Miu, will also oversee Giorgio Armani’s push into accessories, an area Marsocci described as “a great opportunity”.
The upheaval internally has delayed formal talks over a stake sale, which were initially expected to take place in June but will now be held in late September or early October, according to people familiar with the matter.
They will be held against the backdrop of a protracted downturn in luxury spending. Armani’s revenues fell for a second consecutive year in 2025, declining 2.8 per cent to €2.19bn after a 5 per cent fall in 2024.
However, earnings before interest, tax, depreciation and amortisation rose 3.2 per cent to €153mn, helped by cost reductions and a stronger performance from Armani Privé.
Two of Armani’s preferred investors — EssilorLuxottica and L’Oréal — have longstanding commercial relationships with the group.
Ray-Ban owner EssilorLuxottica, which has a licensing deal with Armani until 2038, is unlikely to buy a large stake, according to people close to the situation.
The people said that the eyewear group was focused on expanding in medtech and in the US, with little appetite to own a luxury fashion house. Any investment would be motivated by chief executive Francesco Milleri’s willingness to support the Armani family, the people added.
Although L’Oréal has invested in fashion businesses, such as the French brand Jacquemus, it does not operate them and its priority is protecting its lucrative Armani licensing agreement, which runs until 2050, according to people familiar with its thinking.
LVMH has expressed its interest in being involved in the Armani minority stake sale process, according to people with knowledge of their position.
The people cautioned, however, that it was not an obvious fit with its portfolio, given that the group generated a significant share of sales at lower price points than LVMH’s core brands and had a portfolio weighted more towards fashion than high-margin accessories.
Longstanding personal ties between members of the Arnault family, which controls LVMH, and the late designer nevertheless remained an important factor, the people added.
Agreeing on a valuation may also be a stumbling block. People close to the group have floated a figure of about €10bn, while potential investors put its value at between €3bn and €7bn. Should none of Armani’s preferred suitors or any other acceptable buyers emerge, a stock market listing is a fallback option.
One person who has worked for the group said that beyond the numbers, the biggest shadow hanging over the talks would be that of the late designer himself.
“The challenge is not selling Armani,” the person said. “It is showing that Armani can grow without Giorgio Armani.”