Bloomberg Businessweek - USA (2019-06-17)

◼ BUSINESS Bloomberg Businessweek June 17, 2019

17

producingeverythingincludingred-carpetgowns,
logo swimbriefs, perfumes, eyeglasses, and
sleekhotelsdottedaroundtheworld.Armani’s
aesthetic—streamlinedbutsensual,dressed-upand
laid-backatthesametime—hasbecomeshorthand
forclassicItalianeleganceandluxurydesign.His
savvyatexportingit totheworldhashelpedhim
amassoneofItaly’sbiggestfortunes.
Butfallingrevenuessince 2016 suggestthetime
mayhavepassedforArmani’stimelessstyle.Recent
yearshaveseenhiscreationsfalloutoffashion’s
spotlight.A periodofultracasualandathleticdress-
inghastakenhold—withhoodies,sneakers,and
yogapantsinfiltratingmanybusinessworkspaces—
associalmedia-friendlydesignsspearheadedby
Gucci’sextravagantaestheticsseducedyounglux-
uryshopperstothedetrimentofmoreconserva-
tivecreations.ThedeclineofAmericandepartment
storesandtheriseofonlineshopping,where$3,
tailoringisa toughsell,havealsohurt.“When
you’vebeensosuccessful,sometimesit’sdifficult
torealizeyouhavetochange,”saysMarioOrtelli,
a London-basedluxuryconsultant.“Thecompany
remainstruetoitsDNA,butit hasn’tbeenfast
enoughtotargeta changingcustomer.’’
Thecompanyhasyettodisclosesalesfor2018,
butArmanisaidina statementlastAugustthathe
didn’texpectit toreturntogrowthbeforenext
year.GeneralManagerLivioProlisteppeddown
inMarchandwasreplacedwithtwointernal
hires.Armanideclinedtocommentontherea-
sonsfortheseparation.
Thecompanyhasembarkedona restructur-
ingplantostreamlineitssevenlabels.Midprice
department-storelinessuchasArmaniJeansand
ArmaniCollezioniarebeingdiscontinuedandtheir
productsfoldedintoa moremanageablestableof
threemainlabels.Thatcouldreducecustomer
confusionandallowfora morefocusedinvest-
mentindigitaladvertising,Ortellisays.
MuchlikeRalphLauren,Armani’sAmerican
analogue,Armaniisknownforlivingthedream
he’sselling.Instantlyrecognizableforhiswhite
hairanddeeptan,oftenseeninrelaxeddrawstring
trousersanda fittedT-shirtorcrewnecksweater,
hecruisesaroundposhcornersofsouthernItaly
onhis210-footcustomsuperyachtMaìn, a child-
hoodnicknameforhismother,andvisitsmore
thana half-dozenhomesinAntigua;St.Moritz,
Switzerland; and elsewhere, furnished with an
ever-expanding menu of Armani-designed wares
to ensure that everything meets his aesthetic spec-
ifications. “I admit to being a control freak,” he says.
“It’s important that everything that bears my name
is inspected through my personal lens.”

Astheonlyshareholderofhiscompany,with

a networthofabout$6.6billion,accordingto

Bloombergcalculations,Armanicanbeasfussy

as hechooses.Hissharpeyeextendstolicensing

agreements:Inmeetingswiththeteammanaging

L’OréalSA’sGiorgioArmaniBeautysubsidiary,he’s

beenknowntotossoutmostimagesfroma photo

shootina matterofseconds,keepingonlytheone

or twohefinds“mostArmani”forthecampaign.

“Helikestomakesurethateverythingthat

toucheshisnameisconsistentwithhisvision,”

saysNicolasHieronimus,deputyCEOandhead

of L’Oréal’sluxurydivisionsince2011.AddsCate

Blanchett,whoacceptedherBestActressAcademy

Awardatthe 2014 Oscarsina goldgownfromthe

designerandbecameArmaniBeauty’sglobal

spokeswomanlastyear,“Tosayheishands-on

is anunderstatement.I rememberone fitting

wherehesenttheseamstressoutandgotdown

andpinnedthehemofmydresshimself.”

ArmanigothisstartdressingwindowsinMilan’s

iconicRinascentedepartmentstore,becominga

mensweardesignerunderNinoCerruti,atthe

timeoneofthebiggestnamesinItalianfashion.

Hefoundedhisowncompanyin 1975 withhispart-

ner,SergioGaleotti.Thebigbreakthroughcamein

the1980s,whenArmaniturnedhisfocuswest—

chasingopportunitiestodressAmericanstarsfor

theredcarpetandoutfittingthemonscreen,asin

thecaseofthemobsterepicTheUntouchables, the

hitTVseriesMiamiVice, ora youngRichardGere

in AmericanGigolo.

TheblendofHollywoodglamourandArmani’s

sensualItalianaestheticrevolutionizedfashion,

pushingasideboxyandbuttoned-uptailoringin

favorofroomysuitsthatdrapedsuggestivelyacross

thebody.Thelookfoundfemalefansaswell,partic-

ularlycorporatewomenwhoquicklyeschewedear-

lierstrainsof“powerdressing”infavorofthesoft

butconservativelinesofArmanisuits.

*YEAR-OVER-YEAR,EXCLUDINGCURRENCYSHIFTS,ACQUISITIONS,ANDDISPOSALS.DATA:BLOOMBERG,COMPANYREPORTS

LuxuryMakers’DivergingFortunes

2017 revenue,billionsofeuros

-5% 0%change* +25%

Hermès Kering

Burberry

Moncler

Richemont

TodsPradaFerragamo

Armani 10.

2.3 3.3 5.

LVMH

42.

1.

10.

“He likes to

make sure that

everything

that touches

his name is

consistent

with his vision”

1.0 1.

3.