The sale of the first 15 per cent of the share capital, as stipulated by Giorgio Armani in his will, may not take place before 2027, or may even be delayed beyond March 2027, according to estimates by the Italian daily *Corriere della Sera*. Behind this delay lies a very specific strategy: not to sell an exceptional asset at a time when the slowdown in the luxury sector is weighing on its performance and valuation.
Almost a year after the death of the Italian designer, who passed away on 4 September 2025 at the age of 91, the succession of ‘King Giorgio’ is taking its time.
Yet Giorgio Armani had mapped out the future of his company in great detail. His will provides for the sale of an initial 15 per cent stake, with priority given to three groups: LVMH, L’Oréal and EssilorLuxottica. A second phase could subsequently lead to the sale of a further 30 per cent to 54.9 per cent.
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The Armani Foundation Prioritises the Right Timing
However, the timetable set out by the fashion designer is not legally binding. For the Giorgio Armani Foundation, which now oversees the group’s strategy, the priority is therefore to secure the best possible terms rather than adhere to a specific date.
The financial context partly explains this caution. Armani recorded turnover of €2.19 billion in 2025, down 2.8 per cent at constant exchange rates. Initial figures for 2026 also point to a challenging environment characterised by decline, particularly in the wholesale sector.
At the same time, Armani has embarked on a cost-rationalisation programme and reduced its operating costs by €25 million. The first-half results, due on 8 September, are expected to confirm these trends.
A Fashion House Still Strong Enough to Wait
Despite this downturn, it is important to note that the company has nearly €600 million in net cash and almost €2 billion in equity. Another positive factor to bear in mind is that, when direct sales of licensed products are included, the revenue generated by all activities linked to the Italian brand exceeds €4 billion.
Armani is therefore not in a position that would force it to sell a stake in the company quickly. On the contrary, waiting may allow it to avoid having to set the company’s value at a difficult time for the luxury sector.
The possibility of an initial public offering (IPO) also remains on the table. This would offer a major advantage: opening up the company’s share capital whilst ensuring that management control remains with the family and current executives, under the strategic supervision of the Armani Foundation.
Key Points:
- The sale of the first 15 per cent of Armani’s share capital could be postponed until 2027, despite the provisions set out in Giorgio Armani’s will.
- The Armani Foundation prioritises maximising the company’s value over adhering to a timetable, against a backdrop where the luxury market remains under pressure and where 2025 turnover fell by 2.8 per cent at constant exchange rates.
- The company still enjoys a solid financial position, with nearly €600 million in net cash and nearly €2 billion in equity, meaning it is under no immediate pressure to open up its share capital.
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