EssilorLuxottica, LVMH and L'Oréal could each take a 5% stake in Armani
Italian fashion house Armani is reportedly considering selling a 15% stake in its capital, split equally among three major industry players: EssilorLuxottica, LVMH and L'Oréal, according to La Repubblica.
According to reports from the Rome-based daily, the prevailing strategy within the company founded by Giorgio Armani would be to sell a 5% stake to each of these three groups.
This initial transaction would constitute the first phase of a broader plan, with a second stage to follow later to determine the final decision regarding the evolution of the company's structure, La Repubblica indicates.
According to analysts at AllInvest Securities, this divestment would align with the testamentary provisions of the recently deceased founder, which stipulated that an initial 15% sale of the capital should take place within 12 to 18 months of his passing.
An entry ticket with limited financial impact
According to the brokerage firm, Armani's CEO is currently preparing a strategic plan and is set to appoint two advisors to oversee the operation, who will then be tasked with sharing the business plan with potential investors.
Armani generated 2.2 billion euros in revenue in 2025, a figure that would reach nearly six billion euros when including fragrance, beauty, and eyewear licenses.
Rumors suggest a valuation between 10 and 13 billion euros, meaning a 5% stake for each of the three aforementioned players would be non-material at their scale, AllInvest notes.
On the Paris Stock Exchange, EssilorLuxottica shares were up 0.4% in mid-morning trading on Monday, while LVMH fell 3.2% amid renewed concerns over the geopolitical situation in the Gulf, and L'Oréal dropped nearly 2% for the same reasons.
EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, the company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family.
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