Armani is preparing to begin talks with LVMH, L’Oréal and EssilorLuxottica over the sale of a minority stake in the luxury fashion house.
The Italian group is expected to hold meetings with the three companies in the coming weeks, in line with instructions left by founder Giorgio Armani before his death last year.
Armani’s will stipulated that an initial 15 per cent stake in the business should be sold between 12 and 18 months after his death, followed by either the disposal of a larger holding or a stock market listing.
The designer named LVMH, L’Oréal and eyewear giant EssilorLuxottica as preferred potential buyers, while leaving open the possibility of bringing in other investors of comparable standing.
Armani chief executive Giuseppe Marsocci said the 15 per cent holding could potentially be split between more than one investor.
“It is not written in stone that it has to be one investor,” he said at the Giorgio Armani fashion show in Milan on Sunday, adding that no decision had yet been made.
Marsocci said the business intended to follow the timetable laid out by its founder, although any transaction would ultimately depend on reaching agreement on price and other terms.
The FT reported that one option discussed informally would see LVMH, L’Oréal and EssilorLuxottica jointly take the 15 per cent holding.
Giorgio Armani died aged 91 in September last year, leaving the group facing one of the biggest ownership transitions in its history.
The luxury giant remained privately controlled throughout Armani’s lifetime, despite repeated speculation that it could be sold to one of the sector’s major conglomerates.
The company recorded sales of €2.2bn in its most recent year, down 2.8 per cent, while holding around €500m in net cash. Analysts have valued the business at between €5bn and €7bn.
The potential sale comes as the wider luxury market continues to battle weaker demand, particularly among aspirational shoppers, with major groups including LVMH and Kering under pressure from slowing spending and geopolitical uncertainty.
L’Oréal overtook LVMH earlier this month to become France’s most valuable listed company, amid stronger investor confidence in beauty compared with the higher-priced luxury fashion market.
Prada, meanwhile, has ruled itself out of a potential move for Armani as it focuses on turning around Versace following its acquisition of the fashion house.
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