Giorgio Armani’s Vision for the Future of His Company

What Happened?

A little more than a week after Giorgio Armani died, new details have emerged about his vision for the future of the company he built over 50 years. According to reports, Armani’s heirs will receive a share of 15 percent in the business within 18 months of his death, with a much larger tranche – between 30 and 54.9 percent – to be sold to the same buyer three to five years later. If not, an IPO will be followed.

Preferred Partners

The will reportedly names the French luxury conglomerate LVMH, the French beauty giant L’Oréal Group, and the head of Essilorluxottica as primary partners. These groups are already connected to Armani via existing business partnerships. L’Oréal Group, which holds the Armani Beauty license, refused to comment on the news. LVMH and Essilorluxottica, which hold the Eyewear license for Giorgio Armani, Emporio Armani, and Armani Exchange, could not be reached at the time of press.

Why is it Important

Armani’s independence was a cardinal value throughout his career. The fact that the brand can become part of a larger group in the coming years marks the end of an era. So far, few details have been revealed about Armani’s succession plan. It was known that Armani held 99.9 percent of the shares of the company he built. Now, Armani’s testament has given three preferred partners, indicating a desire for security and autonomy.

Autonomy and Synergies

The preferred partners have significant size and potential synergies. LVMH has a decentralized model with its houses, while L’Oréal and Essilorluxottica do not concentrate on fashion, which could give Armani a certain autonomy. Armani’s testament suggests he is trying to build a security net while maintaining a measure of autonomy. With 2024 revenues of €2.3 billion, down 5 percent year on year, the Armani group’s future is uncertain, but the named partners could provide a stable foundation for the brand’s continued success.