Armani's Economic Reach Extends Beyond Fashion, Analysts Note

Industry sources and analysts indicate that a significant portion of Armani's economic value stems from its beauty and eyewear sectors, rather than its stagnating fashion business. When including sales from its crucial, long-term licensing agreements with L'Oréal (beauty) and EssilorLuxottica (eyewear), the company's total revenue nearly doubles to over 4 billion euros. These licensed product sales are fundamental to valuing the brand in a potential transaction. Following the death of founder Giorgio Armani, his will identified L'Oréal, EssilorLuxottica, and LVMH as potential acquirers. Although the beauty and eyewear segments are potentially more profitable than the core fashion group, the extended duration of these licensing deals—L'Oréal's agreement extends until 2050—presents a challenge for any prospective buyer.