Armani Names Deputy Managing Director and Long-time Giorgio Armani Ally as CEO

Giorgio Armani on Thursday named Giuseppe Marsocci, the Milanese fashion house’s deputy managing director and global chief commercial officer, as its chief executive.

Marsocci, a 35-year luxury industry veteran, takes the reins at a critical time for Armani, as the company seeks to fulfil the desire of its founder by selling off a 15 percent stake within the next year-and-a-half.

Giorgio Armani, who died last month at 91, said in his will that he wanted the stake to be sold to LVMH, L’Oréal, EssilorLuxottica or another luxury company of equal standing. If no buyer is found, Armani is supposed to hold an initial public offering. That’s considered a possibility by analysts, since any buyer won’t gain complete control of the company even if they later buy a majority stake — a possible turn-off for prospective purchasers.

A secondary stake of between 30 percent and 54.9 percent is to be sold to the buyer of the initial stake between three and five years after Armani’s death, according to the will. Even if the buyer gains more than 50 percent, the Armani Foundation, which currently owns 100 percent of the company, will have the final say on some important decisions.

Marsocci, 61, previously served as the head of the company’s America division and since 2019 worked directly alongside Giorgio Armani in Milan. Marsocci will report directly to the board, which is chaired by Pantaleo Dell’Orco, Mr. Armani’s closest collaborator until the stylist’s death, the company said in a statement.

“His international professional experience, deep knowledge of the sector and the company, discretion, loyalty, and team spirit, together with his closeness to Mr. Armani in recent years, make Giuseppe the most natural choice to ensure continuity with the path outlined by the founder,” Dell’Orco said.

Marsocci’s initial work will be made more challenging by a two-year downturn in the luxury market. The malaise hasn’t spared the Milanese brand, which saw its revenue and profit fall last year. Stripping away the licensing fees it makes in deals with L’Or​​éal for beauty and EssilorLuxottica for glasses, the company would have lost money last year.

In a stake sale or an IPO, Armani is likely to be valued at between €4 billion ($4.7 billion) and €7 billion, according to industry analysts. Mr. Armani was seeking a buyer for the company some years ago, but was asking for too high of a valuation, according to a person who was part of the discussions and was working at the time for a potential buyer.

Before joining Armani, Marsocci worked in sales, marketing and brand management for a company that had licenses with Armani, Valentino, Dior and Stone Island.