Armani’s business value extends far beyond its roots in luxury fashion. With the late designer’s name attached to high-performing beauty and eyewear licenses, analysts say these categories could prove crucial for any potential buyers.
Armani attracts buyer interest with beauty and eyewear power – Reuters
The fashion house, founded by Giorgio Armani 50 years ago, reported revenue of €2.3 billion ($2.71 billion) last year, down 5% from the previous year, amid a global luxury slowdown and as a shift to casualwear reduced the appeal of its classic suits.
However, filings by the Italian company show that figure nearly doubles to €4.25 billion with the inclusion of sales from beauty and eyewear — products made under license since 1988 by L’Oréal and EssilorLuxottica, respectively.
Giorgio Armani’s will, published last week following his death on September 4, named those two companies alongside French luxury giant LVMH as potential buyers of the business.
Armani-branded perfumes and beauty products in L’Oréal’s portfolio generate around €1.5 billion annually, according to industry sources and analysts, while Armani eyewear contributes approximately €500 million to EssilorLuxottica.
Just over one-tenth of that goes to the Armani Group as royalties, according to Reuters calculations based on filings.
Sales of licensed products could be a fundamental factor in determining the price of Armani in a potential transaction, according to an industry source who has worked at a possible suitor.
While operating profit for the Armani Group — which depends largely on fashion — shrank to 3% of net revenue last year, the beauty and eyewear businesses are potentially more lucrative. L’Oréal reported an overall operating profit margin of 20% last year, while EssilorLuxottica’s stood at nearly 17%.
The Armani brand is “great eyewear, great beauty, a great legacy, but the ready-to-wear brand today is not the hottest on the planet,” HSBC analyst Erwan Rambourg told Reuters.
Licenses central to potential sale
Armani’s license with EssilorLuxottica — in which the designer held a 2% stake — was renewed in 2023 for a 15-year term. The deal with L’Oréal runs until 2050.
Aware of the importance of these collaborations, Giorgio Armani’s will states that priority for any sale should be given to groups with which his company “already has a partnership.”
EssilorLuxottica and L’Oréal said last week they would assess a possible investment in Armani, which they will initially hold as a 15% stake. A second, larger stake should be transferred later to the same buyer or a listing sought, the will says.
LVMH, controlled by French billionaire Bernard Arnault, said it was honored to be named as a potential partner.
Maintaining control of the sizeable Armani license through a large stake purchase would be more significant for L’Oréal than for EssilorLuxottica.
A bid by L’Oréal for Armani may follow the precedent set by beauty group Estée Lauder, which purchased fashion label Tom Ford in 2022 — keeping the fragrances but granting long-term licenses to other players for apparel and eyewear.
Armani is “highly regarded” as a beauty brand, said Morningstar analyst Dan Su. It is also one of the best-known names in men’s fragrances, a segment that is booming. L’Oréal CEO Nicolas Hieronimus told Reuters in July that its “Stronger With You” fragrance was a “phenomenon” among younger men.
Managing a fashion label in addition to beauty could add complexity for L’Oréal.
And despite their long collaboration, Armani would be a tough nut to crack for EssilorLuxottica, which dipped into fashion by acquiring streetwear brand Supreme in 2024, but has emphasized its aim to become a med-tech group.
LVMH, with its depth and breadth of luxury expertise, would have the ability to manage a full acquisition that brings in-house the full suite of Armani’s sprawling businesses, several industry experts said.
The French conglomerate could manage eyewear via its Thelios unit, while beauty is already a core business.
But LVMH may struggle to bring Armani beauty and eyewear in-house any time soon, given the existing long-running licenses.
Boss Arnault would also have to cohabit with a foundation set up by Armani that will hold de facto veto powers.
“LVMH and L’Oréal are like chalk and cheese,” said Rambourg.
The Louvre Museum closed its doors to thousands of disappointed visitors on Monday as staff launched a strike to protest working conditions at the Paris landmark, two months after a shocking robbery.
The glass entrance to the Louvre in Paris, France – DR
Workers are demanding extra staff and measures to tackle overcrowding, adding to the woes of the world’s most visited museum just as France is gearing up for the Christmas holidays.
The strike comes nearly two months after the museum was victim of an embarrassing daylight heist that saw crown jewels worth $102 million stolen.
“We are closed,” a security agent told visitors on Monday morning, according to an AFP journalist. “Come back in a few hours.”
Around 400 employees voted unanimously to continue their strike at a general meeting, the CGT and CFDT unions said.
“I’m very disappointed, because the Louvre was the main reason for our visit in Paris, because we wanted to see the ‘Mona Lisa’,” said 37-year-old Minsoo Kim, who travelled from Seoul to Paris with his wife for their honeymoon.
Natalia Brown, a 28-year-old tourist from London, said she was also disappointed. “At the same time, I understand why they’re doing it, it’s just unfortunate timing for us.”
Speaking on the eve of the action, Christian Galani, from the hard-left CGT union, said the strike would have broad support across the museum’s 2,200-strong workforce.
“We’re going to have a lot more strikers than usual,” Galani said. “Normally, it’s front-of-house and security staff. This time, there are scientists, documentarians, collections managers, even curators and colleagues in the workshops telling us they plan to go on strike.”
All have different grievances, adding up to a picture of staff discontent inside the institution, just as it finds itself in a harsh public spotlight following the shocking robbery on October 19.
Reception and security staff complain they are understaffed and required to manage vast flows of people, with the home of Leonardo da Vinci’s “Mona Lisa” welcoming several million people beyond its planned capacity each year.
A spontaneous walk-out protest on June 16 this year led the museum to temporarily close.
The Louvre has become a symbol of so-called “over-tourism”, with the 30,000 daily visitors facing what unions call an “obstacle course” of hazards, long queues, and sub-standard toilets and catering.
Documentarians and curators are increasingly horrified by the state of disrepair inside the former royal palace, with a recent water leak and the closure of a gallery due to structural problems underlining the difficulties.
“The building is not in a good state,” chief Louvre architect Francois Chatillon admitted in front of lawmakers last month during a parliamentary hearing.
Under-fire Louvre boss Laurence des Cars, who faces persistent calls to resign, warned the government in January in a widely publicised memo about leaks, overheating and the declining visitor experience.
After the memo, French President Emmanuel Macron announced a massive renovation plan for the museum, expected to cost 700 million to 800 million euros (up to $940 million).
Questions continue to swirl since the break-in over whether it was avoidable and why a national treasure such as the Louvre appeared to be so poorly protected.
Two intruders used a portable extendable ladder to access the gallery containing the crown jewels, cutting through a glass door with angle grinders in front of startled visitors before stealing eight priceless items.
Investigations have since revealed that only one security camera was working outside when they struck, that guards in the control room did not have enough screens to watch the coverage in real time, and that police were initially misdirected.
Major security vulnerabilities were highlighted in several studies seen by management of the Louvre over the last decade, including a 2019 audit by experts at the jewellery company Van Cleef & Arpels.
Their findings stressed that the riverside balcony targeted by the thieves was a weak point and could be easily reached with an extendable ladder- exactly what transpired in the heist.
Dr Martens announced its independent non-executive director Robert Hanson has been continuing to purchase the brand’s stock, in what looks like a further positive sign for the global footwear retailer.
Dr Martens
In a release to the London Stock Exchange, Dr Martens said Hanson has just purchased another 104,000 shares, worth over £80,000. This is in addition to the 96,000 shares he purchased a week ago (8 December) to the tune of around £75,000.
Hanson, who joined the Dr Martens’ board in March as a non-executive director and was previously president of Americas at Levi’s as well holding CEO roles at American Eagle Outfitters. He looks to be banking on a positive future for Doc Martens (and his post) with directorship purchases taken as a sign they’re expecting an improving performance in the markets and at retail.
Dr Martens is currently working through a recovery from a major period of weakness and it seems to be yielding results. Its first half update in November showed progress, with the America recovering.
Six-month results for the FY26 period to late September showed the execution of its new strategy on track with full-price DTC revenue rising 6%.
But there were some negative figures with overall revenue on a reported basis dipping by 0.8% to £322 million. However, it would have risen by 0.8% at constant currency rates.
Leonard Paris is entering a period of transition: the brand and Georg Lux, its creative director since January 2021, have announced the end of their collaboration. In a statement issued by the house, Georg Lux describes this as “a precious chapter” in his career and notes the privilege of engaging with the brand’s heritage while imprinting it with his personal vision.
Georg Lux joined the house in 2021
The German designer joined the French luxury house to support a reinterpretation of its historic DNA. His collections sought to marry Leonard’s visual heritage, particularly its work with silk jersey and floral prints, with a more contemporary vocabulary tailored to an international clientele.
The end of a ‘fruitful’ collaboration
Yuichi Nishi, president of Leonard Paris, hailed the collaboration as ‘fruitful’ and highlighted the creative director’s ability to honour the house’s fundamental codes while showing creative boldness. The brand said it is approaching this transition “with serenity and ambition,” and announced that the details of the new creative direction will be unveiled shortly.
This change comes as Leonard faces a significant downturn in its business. According to the company’s financial statements for the year ending December 31 2024, net revenue totalled €6.77 million, compared with €7.26 million in 2023, confirming a pattern of erosion in recent years.
Declining financial results
This decline was accompanied by a net loss in 2024, following a loss already recorded the previous year, despite shareholder support and efforts to reposition the brand creatively. Georg Lux’s departure comes at a pivotal moment, when artistic renewal intersects with the brand’s economic challenges.
Acquired in 2022 by its long-standing Japanese partner Sankyo Seiko, Leonard has for several years been working to consolidate its positioning in a luxury market undergoing profound transformation, marked by intensifying competition and the greatly expanded communications capabilities of the major groups.
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