MILAN - One year after the passing of Giorgio Armani, the fashion house he founded is shifting from a year spent on governance issues toward the operational and strategic steps laid out in the late designer's will. Armani died aged 91 on September 4, 2025, and his testament directs that an initial sale of roughly 15% of the company should be carried out between 12 and 18 months after his death, followed later by the sale of a larger stake or an eventual stock market listing.
The group spent much of the past year stabilising leadership and board oversight. Industry executives and analysts now say the heirs and advisers must turn their attention to adapting the company so the brand remains fresh and relevant in a competitive luxury landscape.
"Continuity is the right choice to get through the first year. It becomes, or could become, a risk if it turns into inertia," said Francesco Fiorese, a partner at consultancy Simon Kucher. He said the imperative is to move from "a succession model based on Giorgio Armani's legacy to a more autonomous system, capable of making its own decisions while still preserving the brand's identity." The comment underlines an internal tension between preserving the founder's aesthetic and building governance that can act independently.
New business plan and strategic posture
As the company prepares a fresh business plan, CEO Giuseppe Marsocci, a long-serving executive now leading the group, told an event in July that Armani will avoid short-term fixes and remain faithful to the founder's long-term vision: an essential, elegant style focused on wearability and attention to detail. Marsocci has described Armani as still being in transition and said the group is seeking a new balance while the founding family works alongside recently appointed board members, among them former Gucci CEO Marco Bizzarri.
Marsocci pointed to a joint venture to develop Armani Hotels & Resorts as evidence of strategic moves the group is contemplating. "The great challenge will be maintaining the balance between the identity that defines us and the inevitable evolution we will have to pursue," he said, framing the task as one of preserving core brand DNA while enabling change.
Financials, valuation and timing
Armani reported sales down 2.8% at constant currencies to 2.2 billion, a performance that comes as investors watch luxury names amid geopolitical tensions and weakening Chinese consumer spending. The fashion house had 500 million in net cash at the end of 2025, according to the information disclosed.
The will names potential buyers including France's LVMH and licensing partners EssilorLuxottica and L'Or e9al, or alternatively another luxury group of comparable standing. Sources say Armani is working with Rothschild as financial adviser on the planned stake sale. Bankers and advisers consulted estimate the group's valuation at roughly 5 billion to 7 billion.
Two people close to the matter told Reuters that there is no immediate pressure to finalise a transaction and that the timeframes in the founder's will are not strictly binding. The process is expected to speed up in the coming weeks, but sources cautioned that a deal could be delayed if market conditions do not support an acceptable valuation.
Potential buyers and licensing dynamics
For EssilorLuxottica and L'Or e9al, acquiring a stake in Armani would protect lucrative licensing agreements that last year generated almost 2 billion in revenue for those groups and delivered royalty income to Armani. Gonzalo Bruj f3, CEO of consultancy Interbrand Global, noted that licensing deals have been profitable and said that, with consumer budgets tightening, accessible categories such as accessories and beauty represent areas with strong potential for growth.
Sources indicate that EssilorLuxottica would be interested only in a small holding and could consider partnering with other bidders. L'Or e9al is reported to have little desire to move into fashion operations but is motivated to protect a beauty licence that runs until 2050. LVMH, which has capacity across fashion, eyewear and beauty, has studied the possibility of a standalone investment, but its propensity to exert control over brands it acquires and the prospect of an IPO for Armani could complicate any bid, according to a source with direct knowledge of the matter.
EssilorLuxottica declined to comment, while LVMH was not immediately available for comment. L'Or e9al replied by email that its position had not changed and that it was honoured Armani had mentioned the company; it said it would examine the opportunity when Armani representatives open discussions.
Outlook and strategic considerations
Executives and advisers engaged with the firm emphasise that the next stage will test the organisation's ability to pivot from legacy-based succession to a structure that makes independent strategic choices. Observers note that the governance and board composition put in place over the past year provide a foundation, but that turning strategic intentions into concrete moves - whether a minority sale, a partnership, or preparing for a broader sale or listing - will require careful timing aligned with market conditions and valuation expectations.
In the short term, the company has options and apparent flexibility on timing. In the medium term, the broader question industry observers raise is how Armani will reconcile the founder's stylistic legacy with necessary change to sustain relevance and growth.
Key points
- The founder's will calls for a first sale of about 15% within 12-18 months of Giorgio Armani's death, followed by the sale of a larger stake or a listing.
- CEO Giuseppe Marsocci is preparing a new business plan focused on preserving the brand's core style while exploring strategic moves like hotel ventures; the company reported sales of 2.2 billion, down 2.8% at constant currencies, and held 500 million in net cash at the end of 2025.
- Potential buyers named in the will include LVMH, EssilorLuxottica and L'Or e9al; bankers estimate a valuation of 5-7 billion, and Armani is working with Rothschild as financial adviser.
Risks and uncertainties
- Market conditions could delay any stake sale if they fail to support an adequate valuation - this affects M&A activity in the luxury sector and potential IPO timing.
- The transition from founder-led succession to an autonomous governance model could stall into inertia, risking the brand's ability to evolve - a governance and strategic risk for the luxury goods sector.
- Shifts in consumer spending, particularly in China, and broader geopolitical factors could weigh on luxury demand and the valuation of a potential transaction.
Note: This article presents the facts provided by company sources and advisers. No additional assertions beyond those facts are made.