The Italian luxury industry is currently being shaken by a major shift in the Armani Group's corporate strategy. According to international sources, the fashion house's top management has begun preliminary discussions with potential buyers for the sale of a minority stake in the group. The list of parties contacted also includes: L'Oréal, the group's historic partner in the beauty sector.
Negotiations, however, remain in their infancy: a binding commitment has yet to emerge, and the possibility of involving private equity funds currently appears remote. The group is expected to enlist the support of Rothschild Bank to guide the process, also thanks to its pre-existing relationship with Irving Bellotti, a board member of the Armani Foundation.
The directives contained in the will
A will, released in recent days, clarified Giorgio Armani's wishes regarding the future scope of the company he founded. It stipulates that an initial 15% stake in the company will be sold within 18 months of his passing. Subsequently, between the third and fifth years, the same purchasing party will be able to acquire an additional stake of between 30% and 54,9%. Alternatively, should the second phase not materialize, the possibility of a stock market listing is contemplated.
The preferred candidates indicated in the will include the LVMH, EssilorLuxottica and L'Oréal groups, as well as other entities deemed of equal prestige, in line with the brand's previous partnerships and commercial relationships.
In terms of governance, the Giorgio Armani Foundation will always retain at least 30% of the capital—as the custodian of the founder's vision—and its exclusive control powers must not fall below this threshold. Furthermore, according to the will, Leo Dell'Orco—Armani's longtime collaborator and partner—and certain family members will receive partial shareholding and voting rights, while the Foundation will play a central role in appointing the next CEO.
The reasons behind the choice: continuity with flexibility
This development represents a momentous shift from the historic position of autonomy that Armani championed throughout his life. The decision to envision a gradual divestment—while retaining safeguards—reflects a prudent openness to forms of alliance or integration in a constantly evolving sector.
The arrival of an international partner could facilitate further synergies in areas such as distribution, global marketing, digital innovation, and financial structures, while maintaining the brand's identity. Industry analysts estimate the value of the entire group between €5 and €12 billion.
Possible scenarios and challenges on the field
- Progressive consolidation: if the same entity were to acquire the two tranches indicated, it could control a significant share of up to 70% of the company.
- Strategic minority stake: the buyer could be a “partner” who respects the operational autonomy of the brand but contributes capital and know-how.
- Initial public offering (IPO): as an option provided for in the will, if the direct transfer does not materialize, IPO remains a possible scenario.
- Risks of misalignment: The inclusion of external investors carries the risk that strategic changes could deviate from the designer's original vision. However, the Foundation is intended to provide a balancing act.
Among the challenges to monitor: internal management cohesion, shared governance, preservation of the brand's stylistic DNA, and the technical and cultural integration methods with the upcoming partner.
This transition marks the beginning of a new chapter for what has always been a bastion of independence in the luxury sector. The decisive decisions are still ahead, and in the coming months, it will be fascinating to follow the evolution of negotiations and the identity of the Armani Group's future ally.