Armani's Heirs Set a Clock Ticking as LVMH Circles a Coveted Minority Stake
Published on 09/27/2026 at 13:01 | Editorial boerse-global.de
Giorgio Armani's estate has left his fashion empire with a deadline, and LVMH may be among the beneficiaries. According to reports from the Financial Times and Reuters, the Italian house is preparing to open talks on the sale of a minority stake, with the French luxury leader named among the leading suitors. L'Oréal and eyewear group EssilorLuxottica are also expected at the table for an initial block of 15 percent.
A will that dictates the timetable
The discussions are bound by instructions the late designer left behind. Armani's will requires that the first tranche of shares be sold within 12 to 18 months of his death, with larger packages or a stock market listing envisioned at a later stage. A plan floated informally among those close to the process would divide the entry stake evenly among the three bidders, though no such structure has been confirmed. Talks originally slated for June were pushed back and are now expected to begin in the coming weeks. Should the parties fail to reach terms, an IPO remains the fallback.
A wide gap on valuation
Money is shaping up to be the sticking point. Voices in the fashion house's orbit are calling for a valuation of roughly EUR 10 billion, while prospective investors put the business at just EUR 3 billion to EUR 7 billion. Both L'Oréal and EssilorLuxottica already hold long-standing licensing agreements with the Italians. For LVMH, a deal would offer a rare opening into one of Europe's last major independent luxury names — a house that posted a slight revenue decline last year but retains broad reach through its secondary lines.
Should investors sell immediately? Or is it worth buying LVMH?
Analysts trim their targets
The approach lands in the middle of a sector still nursing a hangover from years of steep price increases, with shoppers now holding back. The mood on the sell side has cooled accordingly. RBC cut its rating to Neutral from Buy and lowered its price target to EUR 475, while Jefferies trimmed its own target to EUR 440 and kept a neutral stance on the stock.
Paris loses its crown
Slower growth and weaker earnings have reshuffled the market's pecking order. LVMH surrendered its title as France's most valuable listed company to L'Oréal on 15 September, according to Reuters, citing LSEG data — the first time since 2017 that a non-luxury group has closed a Paris trading session in the top spot.
A family reshapes its holdings
Beyond the runway, the Arnault family is redrawing its ownership map. On Wednesday it announced plans to merge Agache with Christian Dior, creating a new Agache entity expected to control 49.76 percent of LVMH and 65.55 percent of its voting rights. The move, targeted for December, includes an offer for the remaining 2.44 percent of Christian Dior. Meanwhile, Bernard Arnault and Alexandre Arnault were listed on Thursday as invited guests to a planned state banquet between Donald Trump and Xi Jinping, Reuters reported.
A stock under pressure
The share price tells its own story of the uncertainty hanging over luxury. LVMH closed Friday at EUR 400.10, down 37 percent since the start of the year and hovering just above its 52-week low of EUR 395.05. With Paris Fashion Week opening Monday, 28 September, the group's flagship labels Louis Vuitton and Christian Dior will present new collections under demanding conditions — appearances that must show whether appetite for exclusive goods can recover despite the tough economic climate, and whether LVMH can use the industry's consolidation to its advantage against the wind.
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