Armani delays 15% stake sale past 2027

Giorgio Armani’s foundation does not plan to sell its first 15% stake in the fashion group before 2027, pushing past the original March deadline outlined in the late founder’s will.

An Italian newspaper reported the delay, citing the foundation’s board. The will had set an 18-month window from Armani’s death, which would have ended in March 2027. That timeline is now considered flexible rather than binding.

Board cites complexity, market conditions

The foundation, led by Pantaleo Dell’Orco, stated the sale “cannot occur before 2027” due to the time required to identify a suitable strategic investor. The process is expected to begin this year but conclude in 2027.

Board member Irving Bellotti described the evaluations as “still preliminary” during an April meeting. He noted the transaction’s complexity, which depends on market conditions and the group’s financial performance. The luxury sector has struggled to regain momentum after its post-pandemic slowdown.

Sources within the group confirmed the will’s timeline was always intended as a guideline. The sale’s timing will depend on finding the right buyer and ensuring the deal aligns with the company’s values. A 15% stake in a privately held business like Armani requires careful consideration, particularly when the goal is to maintain the brand’s legacy.

Sales dip, cost cuts offset some pressure

The group’s financial results highlight the sector’s difficulties. Net sales decreased by 7.5% in January and February 2026 compared to the same period the previous year. Adjusting for exchange rates, the decline was 3.9%.

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The drop was entirely due to wholesale, which fell 10.7% at constant exchange rates. Direct sales, however, rose by 3.5%. Chief executive Giuseppe Marsocci informed the board in April that cost reductions had generated another €25 million in operating savings. Half-year results are scheduled for approval on September 8.

The will also allocated €52.9 million to cover inheritance tax debts owed by certain heirs. This measure prevents the foundation from needing to sell assets early to meet obligations.

Delays in such sales are not uncommon for family-run luxury brands. The foundation’s priority remains finding an investor who respects Armani’s vision, even if it means extending the timeline beyond the will’s original window.

The board emphasized that waiting for the right partner is a deliberate choice. They believe the extra time will ensure a better outcome for the brand’s future.

Retail property values have also faced pressure from shifting economic conditions, further complicating investment decisions in the sector.