Armani Prepares 15 Percent Stake Sale Following Founder's Death

The Italian fashion house Armani is preparing for a potential initial stake sale of approximately 15 percent, a move stipulated in the will of founder Giorgio Armani one year after his death. The company, currently valued between €5 billion and €7 billion, has engaged Rothschild as its financial adviser to manage the process.

Potential buyers identified in the founder's will include LVMH, L'Oréal, and EssilorLuxottica. LVMH has explored a stand-alone investment, while L'Oréal and EssilorLuxottica are primarily interested in protecting their respective beauty and eyewear licenses. L'Oréal stated it will study the opportunity when representatives from Armani S.p.A choose to open discussions.

CEO Giuseppe Marsocci is currently developing a new business plan to address a 2.8% decline in sales, which fell to €2.2 billion. Marsocci noted that the primary challenge involves maintaining the balance between the brand's defining identity and the inevitable evolution the company must pursue. While the will suggested a timeline of 12 to 18 months for the first sale, the deadlines are not strictly binding, and a deal may be postponed if market conditions do not support an adequate valuation.