Armani is co-founder and sole owner of Giorgio Armani SpA, the Milan-based fashion house. The closely held company had revenue of 2.4 billion euros ($2.6 billion) in 2022, from labels that include AJ Armani Jeans and Emporio Armani. He's also a shareholder in EssilorLuxottica, a publicly traded maker of designer eyeglasses.
The majority of Armani's fortune is derived from his ownership of Giorgio Armani SpA. The Milan-based fashion retailer had revenue of 2.4 billion euros ($2.6 billion) in 2022, according to its reported results for that year.
The company's valuation is based on its 2022 financial results and average enterprise value-to-Ebit as well as the average enterprise value-to-sales of two publicly traded peers: Ralph Lauren Corp and Burberry Group PLC. The valuation was updated for 2022 results on July 6, 2023, leading to a rise of about $1 billion.
Armani also owns 2.4% of eyewear-maker EssilorLuxottica SA, based on the 4.6% stake he held in Milan-based Luxottica Group before it completed its merger with Paris-based Essilor in October 2018. Michi Prendin, a spokeswoman for Giorgio Armani Spa, confirmed his shareholding in a December 2021 email.
The value of his cash investments is based on an analysis of dividends, insider transactions, market performance, taxes and charitable contributions.
The billionaire declined to comment on his net worth.
Giorgio Armani was born in northern Italy in 1934 to Maria Raimondi and Ugo Armani. He grew up in the town of Piacenza with his two siblings, Sergio and Rosanna. Inspired by an early love of the human body, he spent two years at medical school at Piacenza University. He began military service in 1957, including a stint at a hospital. While on leave, he found a job as a window dresser at a Milan department store, La Rinascente, eventually working his way up to buyer.
He joined fashion house Nino Cerruti as a designer in 1964, and in the mid-1960s met and befriended architectural draftsman Sergio Galeotti. They co-founded fashion retailer Giorgio Armani SpA in 1975, with Galeotti managing the business and Armani running the creative side. The company expanded throughout the 1970s and 1980s, opening a U.S. subsidiary in 1979, and attracting widespread attention when they designed the clothing worn by Richard Gere in the film American Gigolo.
Galeotti died of leukemia in 1985. Defying naysayers who believed the brand would falter in his absence, Armani continued to grow. The billionaire expanded its operations into Japan in 1988 and rejected overtures from French billionaire Bernard Arnault of LVMH, who wanted to buy a 20 percent stake. The group's in-house distribution network has 2,983 point of sales in 46 countries worldwide, across brands such as Armani Exchange, Armani Jeans and Emporio Armani.
The billionaire started Armani Hotels & Resorts in 2005, a joint venture with Dubai's Emaar Properties. Armani suffered from hepatitis in 2009, returning to work later that year. He's discussed his plans for succession, indicating the company will probably fall under the control of his nieces and nephews. He's also said he doesn't intend to retire.