LVMH Emerges as Front-Runner in Potential Armani Acquisition

The luxury goods sector is abuzz with speculation following revelations from the late Giorgio Armani’s will, which positions LVMH Moët Hennessy Louis Vuitton as a prime contender to acquire the iconic Italian fashion house. The legendary designer, who passed away on September 4th, included specific instructions that could lead to one of the most significant deals in recent industry history.

According to the testament, which was officially opened last Friday, Armani’s heirs are mandated to divest an initial 15% stake in Giorgio Armani S.p.A. within the next 15 to 18 months. The document further stipulates that the selected buyer will then have a three-to-five-year window to potentially increase its ownership to a controlling interest of 54.9%.

In a move that surprised industry observers, the will explicitly names three preferred corporate partners for this transaction: French luxury conglomerate LVMH, beauty giant L’Oréal, and eyewear specialist EssilorLuxottica. This designation provides LVMH with a potential pathway to acquire one of the last major independent luxury fashion brands remaining on the market.

Bernard Arnault, Chairman and CEO of LVMH, responded to the news by expressing his honor at being considered a potential partner. “Should future collaboration materialize,” Arnault stated, “LVMH would be fully committed to further strengthening Armani’s global presence and leadership position.” The acquisition would represent a strategic coup for LVMH, which already oversees a portfolio of 75 luxury brands spanning from Louis Vuitton to Tiffany & Co. Incorporating Armani would fill a notable gap in its predominantly French-focused collection while adding the brand’s signature timeless elegance to its offerings.

Should investors sell immediately? Or is it worth buying LVMH?

This potential transaction emerges during a challenging period for the luxury industry. After experiencing a post-pandemic surge, the sector now faces headwinds in 2025 with slowing growth momentum. Recent analyses suggest that approximately 50 million consumers have shifted away from major luxury brands, citing price sensitivity and broader economic pressures.

For LVMH, adding a revenue driver of Armani’s caliber could provide valuable momentum amid these market conditions. However, competition for the acquisition is expected to be fierce. Both L’Oréal and EssilorLuxottica maintain established long-term licensing agreements with Armani for fragrances and eyewear respectively, potentially giving them advantageous positioning in any bidding process.

The disclosure of Armani’s will initiates an 18-month countdown for the initial stake sale, placing both the heirs and prospective acquirers under considerable time constraints. Market participants will be closely monitoring whether LVMH decides to pursue this opportunity and at what valuation. The company’s upcoming quarterly results in October may provide initial insights into its financial capacity to undertake such a substantial acquisition.