Frédéric Arnault, chief executive of Loro Piana, has emphasized a long-term strategy focused on maintaining the luxury textile brand’s exclusivity rather than pursuing rapid sales growth. Since taking over the Milan-based fashion house last year at age 30, Arnault has prioritized controlled supply over capitalizing on immediate demand for signature products such as the €1,000 White Sole loafers, which the company deliberately keeps in limited supply to preserve their rarity.
This cautious approach contrasts with more aggressive growth tactics seen at other luxury brands like Gucci and has contributed to Loro Piana’s resilience amid a challenging luxury market. According to recent Italian filings, Loro Piana’s revenue grew by 7.5 percent to €1.72 billion last year, while net profits increased 12 percent to €434 million. Arnault noted that the brand’s enterprise value has expanded significantly since LVMH acquired it in 2013, rising from €2.7 billion to approximately €11 billion.
Arnault’s appointment as CEO also marks a notable step in the potential succession within LVMH, whose chairman and CEO Bernard Arnault is his father. Within the Arnault family, leadership roles are spread across the luxury conglomerate: eldest sibling Delphine heads Christian Dior, Antoine oversees the holding company managing Dior and LVMH’s corporate image, Alexandre serves as deputy CEO at Moët Hennessy, and youngest brother Jean is involved in the group’s watchmaking division. Frédéric Arnault has highlighted the pressures inherent in following his father’s legacy but has expressed commitment to embracing them as part of his leadership responsibilities.
Under Arnault’s direction, Loro Piana has intensified efforts to control its supply chain, securing access to scarce raw materials and bringing more specialist craftsmanship in-house. This shift follows last year’s scrutiny when an Italian court placed the brand temporarily under judicial administration amid allegations of worker exploitation at subcontractors. Arnault acknowledged shortcomings in the company’s oversight, explaining that undisclosed subcontracting by a supplier had escaped detection despite internal “capacity checks.” Since then, Loro Piana has implemented enhanced onsite inspections and unannounced external audits to improve compliance and oversight.
In line with these changes, Loro Piana is scheduled to open a new knitwear factory in Ghemme, Piedmont, described by Arnault as the brand’s largest industrial investment to date. While the facility represents a strategic move to build skills and production capacity, Arnault stressed that growth will proceed deliberately, valuing quality and expertise over speed to market.
Arnault also ruled out sharp price increases, stating that pricing should advance only at a rate acceptable to customers relative to the quality offered. Analysts have observed that Loro Piana’s average product prices have risen by 67 percent between 2019 and 2025, positioning the brand at the higher end of the luxury spectrum. This premium positioning has helped the company maintain resilience through economic downturns, though Arnault acknowledged the importance of the more accessible luxury segment and forecasted a stronger return of this customer base in the future.
Overall, Arnault’s strategy embraces sustained brand exclusivity and careful supply chain management as pillars for Loro Piana’s continued success within LVMH’s expansive luxury portfolio.
