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New York, New York – May 25: People pass the Giorgio Armani store in Avenue in Madison Avenue during the weekend Memorial 25. May 2025. years in New York. (PHOTO CRAIG T FRUCHTMAN / GETTI IMAGES)
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Since its founding in 1975. year, Giorgio Armani kept his company independence severely. Even as his fashion empire grew and gained luxury conglomerates, he remained determined to maintain complete control over his company, refusing to compromise his entrepreneurial spirit and an artistic vision.
It was thus determined to maintain the independence of his company, he founded Giorgio Armani Foundation To continue the operating operations of the company as an independent entity after its passage. Now that he moved to a mature old age 91, will the protection that he founded strong enough to preserve his legacy? Can I have his heirs and those who control the interests of the Foundation to resist inevitable temptations to be put before them?
“Brands like these rarely come to market, I expect a significant interest in industry”, shared Amber Analyst Luca Solca. At the same time, he noted that the brand lost some of his cache, which includes the core of Giorgio Armani brand, Emporio Armani and A | KS Armani Exchange, plus beauty, furniture and decor, restaurant and hotel companies.
Solca also noted that the company would benefit from “revitalization and fresh perspective”, which brought new ownership, with a promise of a scale and a maximum shareholder value that is much more attractive.
Revenues of Armani Group reached $ 2.7 billion (2.3 billion euros) in 2024. years, from 5% of the previous year on constant foreign exchange courses. On the profitability side, EBITDA refused 24% to $ 466 million (398 million euros) after a record level of 389 million dollars (332 million euros) in the company.
“I am convinced that the punching consistency and continuity and avoid searching for current gains the best strategy to ensure long-term success” Armani said in a statement. “Thanks to this approach, in increasing more complex and competitive global environments, I am proud to say that we have retained the independence and stability of the group.”
Torches
In 2016, Armani presented its succession plans through the Giorgio Armani Foundation, although specific details will not be revealed to reading his will.
At that time, He founded by-laws For the operation of the Foundation and states how voting action will be distributed. He also chose three people to monitor the basis, everything remains confidential.
Among his close circle and assumed heirs are 72-year-old Pantaleo Dell’orca, who joined the company in 1977. years and will monitor companies’ clothing companies. His nieces, the daughters of the elderly brothers Sergio, work for the company. Silvana Armani manages women’s lines and Robert Armani cultivates the relationships of celebrities and entertainment. His sister Rosanna Armani is sitting on the company’s committee, and her son Andrea Cameran is the director of sustainability management.
Since the beginning of this year, many years of Lieutenants Guisppe Marsocci and Daniel Ballestrazzi were promoted to the Deputy General ManagerWith Martians who monitor sales and marketing and balestrazzi responsible for finances and operations. This manager will have prominent roles while the new organization is formed.
It is unclear how the creative function of the Armani Group will be managed, whether it is under one creative director or divided over various product lines.
Maintenance of tight control
Those who are closest Il Signor Armani – his sobrika among employees and associates – they nurtured to follow his lead. Still, the shoes leaving behind will be difficult to meet. He was also a creative force in the right brain of the company and the executive director of the left brain, a rare combination that testifies to a person’s extraordinary talent.
He didn’t always wear both hats. In the early days, his cofaounder and the life partner of Sergio Galeotti managed the financial and administrative side of business. After Galeotti passed in 1985. years, Il Signor Armani entered this role in this role, becoming the sole owner of the company and the visionary leader.
While the delegation may have been a superpower of some business leaders, Il Signor Armani was known for controlling all the details in large and small businesses.
“All you see is done under my direction and wears my approval. My greatest weakness is to control everything,” he said in his last interview with Financial times Just a few days before his death.
Milan Marketing Professor Alessandro Balossini Volpe Pilja How fast the leadership team will be able to adapt and make decisions without being able to persuade to persuade to Il.
“That transition will not be easy,” said, said, Armani, carefully designed a succession plan, with the aim of preserving many years, the integrity and consistency of his own brand. It will only say that this plan will be successful. “
More guards
In Establishment of foundationThe intention was to “protect the assets of Armani Group management and ensure that these assets are constantly held during time.”
Guided principles to maintain the autonomy and independence of the company and ethical approach to management that supports “continuous development” Brand Armani, core substrates determine “cautiously and balanced” financial management of debt controls. It also determines the “careful” structure for potential acquisitions.
Submissions further draw access to a potential list on the stock exchange. However, the Foundation is needed to wait for five years after the passage before the public goes, According to Reuters.
The structure of the Giorgio Armani Foundation is not unprecedented. The founder of Rolek Hans Vilsdorf founded Hans Vilsdorf, a non-profit organization, which took full-profit corporations Rolex on his death in 1960. years.
The company has successfully managed since then, without pressures of external investors and public markets. It could be argued that due to that structure, Role managed to prosper through the rises and downs in the luxury market of that time.
Innovation or extinction?
It was said that Giorgio Armani changed the form of fashion after his design starred next to Richard Gere American gigolo. However, since then, the luxury fashion industry was subjected to the province of shape, because conglomerates are now dominated in the future of the luxury industry.
In Darwin Conditions, private ownership of a luxury fashion label, norm when Armani began, it was naturally elected extinction. Today, only a few luxury brands are still privately held and controlled family, including Chanel, Dolce & Gabbana, Prada, Mak Mara and Missoni. The conglomerate owned was replaced by an old model, with a promise of scale, synergies and potential to maximize the value of shareholders.
However, the luxury industry Insider and the founder of Sun Deluxe, Susanna Nicoletti believes that the structure of Il Signor Armani could follow the path for a new independent luxury brand brands, because it is already too late for so many of them.
“Giorgio Armani went his way and never followed the trends, nor did they get into temptation finance,” she shared. “He was always a real entrepreneur, always reinvesting in his own business and conduct all his energy to develop the capital of a brand in a natural way. Fashion was passion for him, not a short-term win.”
Nicoletti believes that the following pragmatic approach limited, carefully managed growth – what has brands for brands in the luxury fashion industry – the future of the Giorgio Armani brand is provided under the structure of the Foundation established.
“He will find solutions to be surprised by the industry and we hope to open the way to an organic and pragmatic business model. King Giorgio could indeed be, once again, protiguousness in fashion business. We all hope.
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