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

According to the will released last Friday, the 91-year-old design master, who passed away last week, designated LVMH Group, L'Oréal, and eyewear giant EssilorLuxottica as the preferred acquirers of his fashion empire.

This handwritten will, drafted in April of this year, instructs the heirs to first sell an initial 15% stake in the company 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 the 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 generated approximately €2.4 billion in revenue last year, but growth has stagnated amid a backdrop of young consumers shunning formal wear and a general slowdown in the luxury goods industry.

The will requires a phased sale or listing

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

Armani instructed his heirs to inherit the company through the Giorgio Armani Foundation and to execute this sale plan.

The will clearly states that, in addition to LVMH, L'Oréal, and EssilorLuxottica as the three preferred parties, other existing business partners may also be considered potential buyers. The company's executive committee stated in a statement:

Mr. Armani's intent is very clear: to ensure strategic continuity, corporate cohesion, and financial stability at every stage for long-term development, which is consistent with the philosophy he has shared with the media and close collaborators on multiple occasions.

According to the will, if the phased sale plan fails to materialize, then a market listing of the company will become an alternative option. This arrangement provides dual protection for the company's future, aiming to avoid chaos or fragmentation after his passing.

Three major potential buyers express positive interest

LVMH CEO Arnault has shown strong interest in the acquisition prospects.

He referred to Armani as "the only great fashion designer besides Christian Dior," and the Christian Dior brand is currently owned by this French group. Arnault stated that if cooperation occurs in the future, LVMH will be committed to further enhancing Armani's influence and leadership globally.

L'Oréal expressed in a statement that being considered for the acquisition of shares makes the company feel "touched and honored," and it will carefully study this opportunity. The Armani Group has had a licensing agreement with L'Oréal since 1988 for the sale of beauty products, including the best-selling fragrance Acqua di Gio.

EssilorLuxottica expressed pride in Armani's attention to the group, stating that potential investment will be "carefully evaluated" by the board. The company currently produces and distributes the eyewear collection for the Armani brand.

It is worth noting that Armani stated in a 2023 media interview that he was determined to avoid being acquired by a French luxury group, as he did not want to be "dominated by these impersonal giant structures." However, two of the three companies specified in the will are French companies, and although EssilorLuxottica was founded by the late Italian billionaire Leonardo Del Vecchio, it is also listed in Paris.

Post-Armani Era

As potential external buyers emerge, the internal power transition within the company has also begun.

According to the will, Leo Dell'Orco, who is responsible for the men's wear style office, will play a key role in the group's future decision-making, having received 30% of the company's shares and 40% of the voting rights.

Other heirs of the company include nieces Roberta Armani and Silvana Armani, who work for the company, as well as nephew Andrea Camerana and his sister Rosanna, who serve as directors. The company stated that the primary task of the Giorgio Armani Foundation will be to select a new CEO for the group.

The new leadership and future owners will face significant challenges.

Although the operations of the Armani Group were firmly controlled by its founder until the end, the company's growth has stagnated.

Reports indicate that last year, the group's revenue stabilized at around €2.4 billion, due to weakened demand for the brand's iconic formal wear among younger consumers, while the entire luxury goods industry also faced pressure from slowing growth