By Elisa Anzolin and Elvira Pollina
MILAN, Sept 4 (Reuters) - One year after the death of founder Giorgio Armani, the Italian fashion house is entering a pivotal period as the clock starts ticking on plans for an initial stake sale, after the group spent the last year focused on governance.
Armani, who died aged 91 on September 4, 2025, 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 and analysts warn, however, that one year on, the late designer's heirs and advisers must now focus on evolving, to keep the brand fresh and relevant.
"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.
The real test for the company, Fiorese said, will be to switch 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."
Armani group declined to comment.
NEW BUSINESS PLAN
Over the last year, Armani's sales declined 2.8% at constant currencies to €2.2 billion ($2.56 billion), and investors remain cautious about the luxury sector's health as the war with Iran drags on and Chinese consumer spending is faltering.
As he prepares a new business plan, CEO 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.
He said Armani 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 pointed to a joint venture to develop new Armani Hotels & Resorts as an indication of future strategic moves.
"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.
STAKE SALE
In his will, Armani listed France's LVMH and licensees EssilorLuxottica and L'Oréal as potential buyers - or another luxury group of comparable standing.
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 set out 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, the sources said.
Bankers and advisers consulted by Reuters put the group's valuation at around €5 billion to €7 billion.
LICENSING ACCORDS
For L'Oreal and EssilorLuxottica, a stake in Armani would help to protect licensing deals which last year netted almost €2 billion in revenue for the groups - and royalties for Armani.
"Licensing deals with L'Oreal 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," said Gonzalo Brujó, CEO of consultancy Interbrand Global.
EssilorLuxottica would be interested only in a small holding and could consider partnering with other bidders, two people close to the matter said.
L'Oréal has little interest in entering the fashion business but is keen to safeguard a beauty licence that runs until 2050, according to another person close to the matter.
LVMH, large enough to incorporate fashion, eyewear and beauty, has closely studied the possibility of a stand-alone investment, according to a source with direct knowledge of the matter. But LVMH tends to control brands in its portfolio and an IPO could complicate its bid for Armani if the heirs decided to list the company, the source said.
EssilorLuxottica declined to comment, while LVMH was not immediately available for comment.
L'Oreal told Reuters in an emailed reply to queries that its position on a possible Armani stake had not changed and it was honoured that Armani had mentioned the French cosmetic group. "L'Oréal will study this opportunity, which builds on our long-shared history, whenever the Armani S.p.A representatives choose to open the discussion," it added.
($1 = 0.8601 euros)
(Reporting by Elisa Anzolin and Elvira Pollina in Milan; Additional reporting by Dominique Patton and Mathieu Rosemain in Paris and Lisa Jucca in Milan; Writing by Valentina Za; Editing by Edmund Klamann)
