A Quiet Fashion Empire Faces Its Biggest Change in Decades
Giorgio Armani passed away earlier this year at 90, and the fashion world is still feels the shock. For almost fifty years he kept his company fiercely private. No outside shareholders. No stock-market listing. Just family, loyal staff, and iron control. Now everything is different.
The legendary designer left clear orders in his will: sell or float up to 15% of the company within 18 months, and then slowly open the door wider over the coming years. Four giant names got “priority access” to that first slice – L’Oréal, LVMH, EssilorLuxottica, and one other player of the same size. Among them, L’Oréal just spoke up first.
What Did L’Oréal See This Coming?
Yes and no. The French beauty leader has held the Armani beauty license since 1980s – think Acqua di Giò, Sì, and the whole Privé fragrance line. That deal alone brings in hundreds of millions every year. Losing it would hurt badly. Keeping it forever would be priceless.
At a recent chat with investors, L’Oréal’s finance chief Christophe Babule didn’t hide his excitement. “We will definitely look at this opportunity,” he said. “Work will start very soon.” Short sentence. Clear message. The room understood: Paris is ready to write a big check if the numbers make sense.
Why Does a 15% Stake Matter So Much?
Fifteen percent sounds small, right? In luxury it’s huge. It gives the buyer a strong voice in the boardroom. It locks in the beauty license for decades instead of worrying about renewals every few years. And it stops rivals from grabbing the same seat.
Think about it this way: L’Oréal already owns Lancôme, Yves Saint Laurent Beauté, Kiehl’s, and recently paid $2.5 billion for Aesop. Adding Armani fragrances and makeup forever would push its luxury division past €15 billion in yearly sales. That’s bigger than Estée Lauder’s entire company.
How Much Could 15% Cost?
Nobody knows the exact price yet, but people who follow luxury deals have ideas. Armani the group made roughly €2.4 billion in sales last year, with very healthy profit margins – some say above 20%. Private sales houses like this often trade at 2–3 times sales when a piece comes free. Simple math says the whole company could be worth €20–25 billion. Fifteen percent? Somewhere between €3 billion and €4 billion, give or take.
That’s real money, even for L’Oréal (market value around €220 billion). But the Bettencourt Meyers family, who control the beauty giant, have never been afraid of bold moves when they love a brand.
What Happens If LVMH or EssilorLuxottica Win Instead?
That’s the scary part for L’Oréal. Bernard Arnault’s LVMH already owns Dior, Givenchy, and Fendi beauty. Adding Armani would make him untouchable in prestige fragrance. EssilorLuxottica (Ray-Ban, Oakley, and now the Armani eyewear license) could bundle glasses, clothes, and beauty under one roof. Either way, L’Oréal risks watching its golden license walk away one day.
No wonder Babule sounded urgent.
Bigger Picture: The End of the Last True Independent
Armani was the final big Italian name still 100% owned by its founder. Versace went to Capri Holdings. Valentino now belongs to Kering. Missoni, Ferragamo, Zegna – all have outside investors or are publicly listed. When Armani opens the door, even a crack, an era truly ends.
Some old-timers in Milan feel sad about it. “Giorgio always said ‘never sell,’” one longtime supplier told me over coffee last month. “But he also said he didn’t want chaos after he left. This is his way of keeping the house safe.”
So What Happens Next?
Bankers will soon get busy. Armani’s inner circle – including niece Roberta Armani and long-time CEO Giorgio Del Vecchio – will prepare data rooms. L’Oréal will send its best deal team. LVMH will watch like a hawk. Quiet dinners in Paris and Milan will happen before Christmas.
By spring or summer 2026 we should know who owns that first 15%. And the beauty and fashion worlds will look different the morning after.
The king of beige suits planned everything – even the moment his empire stopped being only his.
