Armani's will revealed: LVMH, L'Oréal, and others named as potential buyers; if unsold, the company will go public.

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The death of Giorgio Armani has set a clear path for the future of his eponymous fashion empire.

According to the contents of the will released last Friday, the 91-year-old designer—who passed away last week—designated LVMH, L’Oréal, and eyewear giant EssilorLuxottica as the preferred buyers for his fashion empire.

The handwritten will, drafted this April, instructs heirs to first sell 15% of the company’s initial shares to one of the three giants. The will also stipulates that within five years of Armani’s death, an additional 30% to 54.9% of shares should be sold to the same buyer.

If the sale plan fails, the heirs should opt to list the company on the capital market. The group’s revenue last year was about 2.4 billion euros, but growth has stalled amid young consumers shunning formal wear and an overall slowdown in the luxury sector.

The will requires phased sales or listing

Armani’s will sets out a detailed blueprint for the future ownership structure of the company.

Armani directed his heirs to inherit the company through the Giorgio Armani Foundation and to implement this sale plan.

The will clearly states that, apart from LVMH, L’Oréal, and EssilorLuxottica as preferred buyers, other existing business partners can also be considered potential buyers. The company’s executive committee said in a statement:

Mr. Armani’s intention is extremely clear: at every stage, to ensure strategic continuity, company cohesion, and financial stability, so as to achieve long-term development—consistent with the philosophy he has repeatedly shared with the media and close collaborators.

According to the will, if the phased sale plan fails, taking the company public will become an alternative plan. This arrangement provides a dual safeguard for the company’s future, aiming to prevent chaos or breakup after his death.

Three major potential buyers respond positively

LVMH CEO Arnault has shown great interest in the prospect of acquisition.

He called Armani “the only great fashion designer besides Christian Dior,” and the Christian Dior brand is now owned by the French group. Arnault stated that if they cooperate in the future, LVMH will strive to further strengthen Armani’s global influence and leadership.

L’Oréal said in a statement that being considered as a potential buyer made the company feel “touched and honored,” and it will study the opportunity carefully. Armani Group and L’Oréal have had licensing agreements since 1988 for beauty product sales, including best-selling fragrances such as Acqua di Gio.

EssilorLuxottica expressed “pride” in Armani’s attention, and said the potential investment would be “carefully evaluated” by its board. The company currently produces and distributes Armani-branded eyewear.

Notably, in a 2023 media interview, Armani expressed his determination to avoid being acquired by French luxury conglomerates, as he didn’t want to be “dominated by these giant structures that lack personality.”

However, two of the three companies named in the will are French, and although EssilorLuxottica was founded by the late Italian billionaire Leonardo Del Vecchio, it is also listed in Paris.

The post-Armani era

While potential external buyers are emerging, internal succession at the company has also begun.

According to the will, Leo Dell’Orco, head of the menswear style office, will play a key role in the group’s future decisions. He will receive 30% of the company’s shares and 40% of the voting rights.

Other heirs include his nieces Roberta Armani and Silvana Armani, both employees of the company, as well as his nephew Andrea Camerana and his sister Rosanna, who serve as company directors. The company said that the top priority for the Giorgio Armani Foundation would be to select a new CEO for the group.

The new leadership and future owners will face significant challenges.

Although Armani Group’s operations were tightly controlled by its founder until the end, the company’s growth has stalled.

Reportedly, the group’s revenue last year remained steady at about 2.4 billion euros, as demand for the brand’s iconic formal wear among younger consumers has waned, and the overall luxury industry faces slower growth.

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