-- Three months before his 90th birthday, Giorgio Armani is hinting at possible big changes for his Italian fashion empire once he’s no longer in charge.After fighting for years to keep Giorgio Armani SpA independent amid the mergers and acquisitions that reshaped the luxury sector, the billionaire design virtuoso now says he won’t rule out his firm someday combining with a bigger rival or listing on an exchange.
But the designer now appears more open to new ideas for the future, though it will be up to his heirs to evaluate them, he said. Uncertainty about the future is common in the Italian luxury industry, where many companies are still independent and family-controlled — including Salvatore Ferragamo SpA, Prada SpA, Moncler SpA and Ermenegildo Zegna NV — and all lack the scale of powerful, acquisitive French rivals LVMH Moet Hennessy Louis Vuitton SE and Kering SA.
Still, size matters in the industry, and Armani posted about €2.4 billion in sales for 2022, the most recent figure available, dwarfed by LVMH’s nearly €80 billion for that year, which includes wine, spirits and distribution revenue.For Armani, the best outcome to the succession dilemma could see the founder’s family remaining at the helm with the support of license partners, said Stefania Saviolo, a lecturer on fashion and luxury management at Milan’s Bocconi University.
“When it comes to succession, I think the best solution would be a pool of trusted people close to me and chosen by me,” Armani said, pointing to the leadership of his company’s foundation, particularly Leo Dell’Orco, who’s supported the designer in managing the company for years, and his nieces Silvana and Roberta Armani and nephew Andrea Camerana.
Finally, the designer said he hopes his native Italy can maintain a central role in the global luxury industry, even as it morphs into something quite different than what it was some 50 years ago, when he began building his company.