Fashion’s Big Bet

The death of Giorgio Armani this month didn’t just close the chapter on one of fashion’s most legendary designers — it opened the door to a high-stakes question: what happens to the Armani empire now?

For decades, Armani stood as a symbol of independence in an industry increasingly ruled by conglomerates. But his will tells a different story — one that could see Armani’s future aligned with global giants like LVMH, EssilorLuxottica, or most intriguingly, L’Oréal.

Armani left nothing to chance. His will requires heirs to sell 15% of the company within 18 months, with preferred buyers drawn from his long-standing business partners. Within three to five years, that stake could grow as high as 54.9%. If no suitable partner emerges, the company could pursue an IPO — ideally in Milan — though the Giorgio Armani Foundation will always retain at least 30.1% ownership to guard his vision. Control of the Foundation goes to Pantaleo “Leo” Dell’Orco, Armani’s longtime partner, with voting rights also divided among nieces and nephews. The goal: preserve the brand’s DNA while ensuring it continues to thrive under new leadership.

Among the potential suitors, L’Oréal is the clear frontrunner. The French beauty powerhouse already manages Armani Beauty — a business worth more than 1.5 billion annually thanks to global bestsellers in fragrance and cosmetics. For millions of consumers, Armani already means beauty, not just fashion. L’Oréal has also proven it knows how to handle heritage brands. After taking over Mugler Beauty in 2016, it revived the label with blockbuster launches and global campaigns. It has kept names like Valentino, Yves Saint Laurent, and Prada relevant in the luxury fragrance space, balancing heritage with commercial success. That track record makes L’Oréal not just a bidder, but a natural custodian of Armani’s next act.

The numbers tell a compelling story. Armani’s fashion division brought in $2.7 billion (€2.3B) in 2024, though revenues slipped 5% year-on-year. Factor in its lucrative licenses — beauty with L’Oréal and eyewear with EssilorLuxottica — and the total value climbs to $4.5 billion (€4.25B). The catch? Fashion margins are tightening, while beauty and accessories remain strong. This dynamic underscores why Armani’s future may lie with a buyer that already excels in beauty. Unlike LVMH, which could fold Armani into a crowded roster, or EssilorLuxottica, whose focus is eyewear, L’Oréal has both the relationship and the revenue streams to guide the house forward.

The idea of a beauty giant taking control of a fashion empire isn’t new. In 2022, Estée Lauder’s $2.8 billion purchase of Tom Ford gave it control of the brand’s name and, most importantly, its fragrance business, while licensing out apparel and eyewear. For Armani, the parallels are clear — and they strengthen the case for L’Oréal.

For fashion lovers, the stakes are emotional as much as financial. Armani has long represented independence, minimalism, and Italian craftsmanship untouched by corporate pressure. His succession plan is designed to protect that spirit, but any takeover will inevitably test it. Will Armani’s signature elegance remain intact under new ownership? Or will the empire shift into something more commercial, more global, less singular?

One thing is certain: Giorgio Armani may be gone, but the empire he built is entering its most dramatic chapter yet. And the world will be watching who takes the reins.

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