Yesterday, according to report, L’Oréal SA is weighing its role in the future of Giorgio Armani SpA but is said to have eyes only on the group’s lucrative beauty arm, according to a person familiar with the matter.
The French beauty giant, which already holds a long-term license with Armani to market its fragrance, skincare and makeup until 2050, is one of three potential buyers named in Armani’s will for a 15% stake in the company, alongside LVMH and EssilorLuxottica. Armani’s heirs have 18 months to complete the initial sale, with an option for the chosen partner to eventually take a majority stake.
Industry watchers note that Armani’s beauty royalties—estimated at €1.5 billion in annual sales—are the cornerstone of the brand’s profitability, representing the bulk of its earnings before interest, taxes, depreciation and amortization. By contrast, Armani’s fashion and interior decoration businesses, which generated €2.3 billion in revenue in 2024, remain less profitable and were hit by a 5% decline last year.
While Armani’s death at age 91 has ignited speculation about the company’s future, insiders suggest L’Oréal is unlikely to stray from its core beauty strategy. Analysts point out that the group could follow a similar playbook to Estée Lauder’s Tom Ford acquisition: owning the beauty business outright while licensing out fashion and eyewear. With LVMH more focused on streamlining its portfolio and EssilorLuxottica keeping its options open, L’Oréal’s existing partnership and scale in luxury beauty could make it the most natural contender for Armani’s prized cosmetics and fragrance line.
