Giorgio Armani's Will Requires Heirs to Gradually Sell Stake or Seek IPO

Giorgio Armani's will outlines a clear plan for the future of his fashion empire, instructing heirs to sell a 15% stake within 18 months and a further 30% to 54.9% to the same buyer within three to five years. Priority for the sale is given to major luxury companies such as LVMH, L’Oréal, and EssilorLuxottica, with the option to consider other fashion and luxury groups with existing commercial ties. If these sales do not materialize, an initial public offering in Italy or another major market should be pursued, with the Fondazione Giorgio Armani retaining a 30.1% stake to maintain control. The will also designates key roles to longtime associates, including Pantaleo Dell’Orco, who holds 40% of voting shares, and emphasizes the foundation's continued influence. This plan marks a significant departure from Armani’s lifetime refusal to dilute control or go public, reflecting a strategic approach to safeguarding the company amid an industry recession. The company generated stable revenue of approximately €2.3 billion in 2024, despite shrinking profits, and Armani left no direct heirs to inherit the business.