The Armani group is preparing to start formal talks with LVMH, L’Oréal and EssilorLuxottica to evaluate the possible sale of a minority stake. The negotiation is part of the new phase opened after the death of Giorgio Armani. As reported by the Financial Times, meetings with the three potential investors should be held in the coming weeks. In his will, the founder himself had indicated his desire to sell an initial 15% share within 18 months of his death. The choice represents a significant step for a maison that has defended its independence for decades, maintaining very tight control over creative and commercial management.
Armani, the hypotheses on the 15% share
One of the possibilities discussed informally concerns splitting the 15% stake among multiple investors. In this scenario, LVMH, L’Oréal and EssilorLuxottica could enter the group’s capital at the same time, without a single one taking on a dominant role in the initial phase.
At the moment, however, none of the three entities seem inclined to make a very significant investment in the short term. The comparison must therefore clarify not only the value of the share, but also the industrial role of the possible partners.
The new strategy after Giorgio Armani’s death
After the death of the founder, Armani began a review of its strategy. A month after the designer’s death, Giuseppe Marsocci was appointed CEO. The new management is working with the support of Boston Consulting Group to redefine the positioning of the various brands and strengthen the most marginal areas. These include above all accessories, considered one of the main growth opportunities for the group.
Governance has also been updated. External profiles such as former Gucci number one Marco Bizzarri and Yoox founder Federico Marchetti have joined the board of directors. Leo Dell’Orco, historic manager of the fashion house, became president. An important part of the new phase concerns Emporio Armani, a brand that generates almost a third of the group’s approximately 2.2 billion euros in annual revenues.
The relaunch was entrusted to Dario Vitale, fresh from his experience at Miu Miu. His task will be to make Emporio Armani younger and more recognizable, while maintaining the distinctive features of the maison.
Vitale will also work on strengthening the offer in accessories, a sector that can contribute to increasing the group’s profitability.
Relationships with possible investors for possible evaluation
Among the possible investors for the minority stake in Armani, EssilorLuxottica and L’Oréal already have consolidated business relationships with Armani. EssilorLuxottica has a licensing agreement in the eyewear sector until 2038, while L’Oréal is linked to the maison by a partnership in cosmetics until 2050. LVMH has reportedly expressed interest in participating in the process, although assessments remain on the compatibility between Armani and the French group’s portfolio, which is more concentrated on brands with strong exposure to high-margin accessories.
One of the central points concerns the value of the group. According to the Financial Times, people close to Armani would indicate a valuation of around 10 billion euros. Potential investors, however, would place the group in a range between 3 and 7 billion. The distance between assessments could impact the timing and structure of the operation. If an agreement is not reached with one of the parties indicated by the founder or with other buyers deemed suitable, the hypothesis of a stock market listing remains possible.
