How Much Is Armani Group Worth Now?

It has been one year since the death of Italian fashion design master Giorgio Armani, yet the luxury giant he founded, Giorgio Armani SpA (Armani Group), has still not sold part of its equity as stipulated in his will. Italian media outlet MFF recently interviewed a group of industry experts, who provided the latest reference for the company's valuation: EUR 5 billion to 10 billion, a downward revision from the EUR 6 billion to 12 billion valuation range circulating in the market a year ago.

Luca Solca, senior global luxury analyst at Bernstein, said that based on valuation multiples corresponding to the group's current performance, as well as factors including the value of the Armani brand's intangible assets, the value of licensing and collaboration businesses, and the growth potential and synergies that a potential strategic acquirer could obtain, "I believe the current valuation of the Armani business is roughly in the EUR 5-10 billion range, and I would take the midpoint of the range as a reference."

Another industry professional manager gave the current estimate: "All things considered, the valuation is EUR 6-7 billion. And I think the valuation will decline slightly each year. A higher valuation would require special deal terms to be reached in other respects."

Given the current situation, last year's decline in performance has become an unfavorable factor for Armani Group. The group said the decline was mainly due to a complex geopolitical landscape that "has intensified uncertainty in the global environment and hit the mass consumer market, while the luxury market itself has also slowed significantly; many observers believe this crisis is structural rather than merely a cyclical downturn."

In fiscal year 2025, Armani Group's consolidated net revenue fell 4.6% year on year to EUR 2.19 billion, down about 2.8% at constant exchange rates. By revenue structure: the retail channel contributed EUR 1.19 billion (at constant exchange rates: -1.5%), the wholesale channel generated EUR 753.7 million (at constant exchange rates: -9.3%), and licensing revenue was EUR 224.3 million (at constant exchange rates: -4.7%).

At the same time, in the previous fiscal year, the group achieved a substantial improvement in profitability through strict control of operating costs: before IFRS 16 adjustments, consolidated EBITDA (earnings before interest, taxes, depreciation and amortization, excluding amortization) rose 3.2% year on year to EUR 152.7 million. EBIT (earnings before interest and taxes) before IFRS 16 adjustments also improved, rising to EUR 52.6 million.

Overall, within the fashion and luxury industry, Armani Group has a relatively solid financial foundation: despite the 4.6% year-on-year decline, direct revenue reached EUR 2.2 billion. Including the licensing business, total brand revenue reaches EUR 4 billion, and adding the value of goods sold at retail, the total business scale generated by the brand's entire value chain exceeds EUR 6 billion. The group's capital strength remains strong: cash on the books of EUR 530 million and net assets of nearly EUR 2 billion; the debt-to-asset ratio fell from 0.48 the previous year to 0.43.

In addition, Armani Group has several important licensing partners and joint venture parties:

The Armani beauty business operated by L'Oréal Group, whose sales scale was recently estimated by the market at about EUR 1.5 billion, with a retail-basis valuation that would double;
The Armani eyewear business operated by EssilorLuxottica, with sales of about EUR 400 million;
The hospitality business segment, including several restaurants and a joint venture with Mohamed Alabbar that operates a number of five-star hotels and resort projects worldwide.

An investment banking source said: "When the deal price is finalized at the negotiating table, all these assets will play a key role."

David Pascucci, market analyst at Xtb, said: "The challenge lies in consolidating the new shareholding structure of Armani Group and in the recovery of the global luxury market. After completing the equity transfer mentioned in the founder's will, an IPO in the future cannot be ruled out, at which point Armani Group could obtain capital and investment directly from the capital markets."

Regardless, the sale of a 15% stake will be the first major test. As previously reported by LuxeCO, although Giorgio Armani's will stipulates that the first 15% stake must be sold within 18 months after the inheritance process begins, and that within the following 3 to 5 years the transferee may further acquire "a minimum of 30% and a maximum of 54.9% of the shares," negotiations over the stake sale are still at an early stage and may not be completed before the March 2027 deadline set in the will.

A person familiar with the matter said the timeline set out in the will is not a hard constraint, and the heirs hope to secure the best possible deal terms.

How Much Is Armani Group Worth Now?

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