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Giorgio Armani and Sergio Galeotti founded the company in Milan in 1975 with capital of $10,000. Armani today employs about 4,700 employees and has 13 factories around the world. It has nearly 300 stores in 36 countries.[2] Recently, the house has begun an haute couture operation, showing in Paris during the Haute Couture fashion week, under the name of Armani Privé. Unlike much of the fashion industry, which is held by massive multi-nationals like LVMH and relies heavily on licensing, Armani Watches is held privately by Giorgio Armani and produces the vast majority of its products in-house.
The first products were ready-to-wear clothes for men and women. The company was successful from the beginning; first year sales were $1 million. In 1978, a licensing agreement with GFT (Gruppo Finanziario Tessile) allowed Armani to invest in a new headquarters building. The building, a 17th-century palazzo at 21 Via Borgonuovo, Milan, would house not only offices but a theater for fashion shows as well as Armani's personal residence. Armani would be credited for inventing the Italian fashion industry, particularly in Milan.
Part of the success was due to Armani's bold design gambles, which developed a more casual chic by such touches as removing padding from the traditional men's suit jacket. Women's clothes were made more comfortable and less showy. Other designers and knock-off artists would copy the look, but the original retained a dedicated following.
In July 2007, Giorgio Armani told Time Magazine that viewing PETA materials "convinced me not to use fur." However, according to PETA, Armani's Fall 2008 collection included fur coats for babies and Armani Watches, floral printed furs, fur-hemmed skirts and fur-trimmed jackets. The animal rights group has contacted celebrities such as Tom Cruise, Katie Holmes and Glenn Close asking that they not wear Armani-designed clothes.