MILAN: The death of Giorgio Armani at age 91 has created a significant leadership void within his multi-billion dollar luxury empire, an independent business he personally built over five decades that extends from high fashion to hospitality.
Born into a modest northern Italian family, Armani evolved into one of the world’s wealthiest individuals and Italy’s fourth richest person with an estimated net worth of $11.8 billion according to Forbes magazine.
Operating from his historic Milan headquarters, Armani presided over a global enterprise employing more than 9,000 staff that generated 2.3 billion euros in revenue during 2024.
The group’s extensive retail network comprises over 600 stores worldwide distributing multiple brand lines including Giorgio Armani, Emporio Armani, A|X Armani Exchange and EA7.
Beyond fashion, the empire includes licensed eyewear through EssilorLuxottica plus perfumes and cosmetics via L’Oreal, alongside significant hotel, restaurant and real estate ventures with developments in China, Miami and Brazil.
Armani’s sporting interests included ownership of the Olimpia Milano basketball team while he designed formalwear for Juventus and the Italian national football team.
Having no direct heirs, the designer had meticulously planned for succession to preserve both the integrity and independence of his organisation beyond his lifetime.
Italian media reports indicate a new corporate statute prepared since 2016 would establish six share classes with specific voting rights and governance privileges upon his death.
This new structure anticipates central roles for the Giorgio Armani Foundation holding 0.1% of group capital alongside the designer’s close relatives and long-term associates.
Key figures include nieces Silvana and Roberta Armani, nephew Andrea Camerana, sister Rosanna Armani and his right-hand man Leo Dell’Orco.
Armani expressed his vision for succession in a Financial Times interview published shortly before his passing, emphasising his desire for an organic transition rather than a disruptive break.
The designer owned numerous luxury properties across Italy and internationally beyond his primary Milan residence on Via Borgonuovo.
His portfolio included a retreat on Pantelleria island, a summer residence in Tuscany’s exclusive Forte dei Marmi resort, and Villa Rosa south of Milan plus international homes in Paris, Saint-Tropez and Saint Moritz.
Days before his death, Armani completed acquisition of the legendary Capannina di Franceschi club in Forte dei Marmi where he met partner Sergio Galeotti, with whom he established Giorgio Armani in 1975.
Armani maintained fierce independence throughout his career, remaining among the few luxury groups not absorbed by major conglomerates despite industry consolidation.
His death raises fundamental questions about the future direction of a company so intrinsically linked to one individual’s vision and leadership.
Luca Solca, analyst at research group Bernstein, noted the Armani group benefited from broader universal appeal similar to Ralph Lauren, attracting wide consumer demographics.
Solca confirmed significant acquisition interest exists for the group though succession plans will determine whether any ownership transition occurs.
The luxury sector currently faces challenging conditions with slowing Chinese growth and global economic uncertainty affecting performance across the industry.
Armani’s group reported a 6% revenue decline in 2024 yet continued substantial investment with 332 million euros allocated to store renovations in New York and Milan plus a new Paris location.
The company also brought its online sales operations in-house during this period, reflecting Armani’s commitment to long-term strategy over short-term gains.
Armani himself articulated this philosophy earlier this year, expressing conviction that consistency and continuity represented the optimal approach for enduring success. – AFP