One year after founder Giorgio Armani's death on September 4, 2025, the Italian fashion house is entering a pivotal period as the clock starts ticking on plans for an initial stake sale. According to reports from Reuters, Armani stipulated in his will that a first sale of around 15% of the company should take place between 12 and 18 months after his death, followed by the disposal of a larger stake or a bourse listing. Industry executives warn that while continuity was the right choice for the first year, it could become a risk if it turns into inertia, requiring the company to evolve to keep the brand fresh and relevant. Francesco Fiorese, a partner at consultancy Simon Kucher, noted that "continuity is the right decision to get through the first year. It becomes a risk, or could become one, if it turns into inertia." The real test will be switching from a succession model based on Giorgio Armani's legacy to a more autonomous system capable of making its own decisions while preserving the brand's identity.
Over the last year, Armani's sales declined 2.8% at constant currencies to €2.2 billion, as reported by Reuters. Investors remain cautious about the luxury sector's health as the war with Iran drags on and Chinese consumer spending is faltering. Chief Executive Officer Giuseppe Marsocci, a group veteran now at the helm, told an event in July that Armani would not seek short-term fixes, while keeping faithful to the founder's long-term vision of an essential and elegant style with attention to detail and wearability. The fashion house had €500 million in net cash at the end of 2025, according to sources cited by Reuters.
As he prepares a new business plan, Marsocci pointed to a joint venture to develop new Armani Hotels & Resorts as an indication of future strategic moves. According to Reuters, he said the company was still in a transition phase and looking for a new balance as the founding family worked closely with new board directors, including former Gucci CEO Marco Bizzarri. Marsocci emphasized that "the major challenge will be to maintain the balance between the identity that defines us and the inevitable evolution that we must drive forward." The CEO noted that Armani was still in a transition phase and seeking a new balance, with the founding family working closely with new board directors to navigate this evolutionary period.
In his will, Armani listed France's LVMH and licensees EssilorLuxottica and L'Oréal as potential buyers, or another luxury group of comparable standing. Bankers and advisers consulted by Reuters put the group's valuation at around €5 billion to €7 billion. The fashion house, which sources said is working with Rothschild as financial adviser for the sale, had €500 million in net cash at the end of 2025. Two people close to the matter said there was no pressure to clinch a sale and the deadlines in Armani's will are not strictly binding. The process is expected to accelerate in the coming weeks, but a deal could be postponed if market conditions fail to support an adequate valuation.
For L'Oréal and EssilorLuxottica, a stake in Armani would help protect licensing deals, which last year netted almost €2 billion in revenue for the groups and royalties for Armani. Gonzalo Brujó, CEO of consultancy Interbrand Global, noted that "licensing deals with L'Oréal and EssilorLuxottica have been profitable. With the market demanding more accessible entry points, like accessories and beauty, as consumer spending tightens, these areas show strong potential for continued growth." EssilorLuxottica would be interested only in a small holding and could consider partnering with other bidders, according to sources close to the matter. L'Oréal has little interest in entering the fashion business but is keen to safeguard a beauty licence that runs until 2050. LVMH, large enough to incorporate fashion, eyewear and beauty, has closely studied the possibility of a stand-alone investment, though an initial public offering could complicate its bid if the heirs decided to list the company.
