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Frédéric Arnault prefers exclusivity over growth at Loro PianaPhoto by nipunharitash on Pexels
Business

Frédéric Arnault prefers exclusivity over growth at Loro Piana

Eco15 September 2026 at 17:47

Loro Piana is deliberately limiting the supply of some of its products to preserve the brand's exclusivity, revealed CEO Frédéric Arnault in an interview with the Financial Times. The luxury brand, owned by LVMH, could sell many more pairs of its White Sole loafers, which cost around a thousand euros, but prefers not to meet all the demand. "We don't want to go too fast so as not to lose quality and we've slowed down a bit," Arnault said.

The strategy coincides with growth in the company's accounts. Loro Piana's revenues increased 7.5% in 2025, to 1.72 billion euros, while net profit rose 12%, to 434 million euros. The enterprise value has reportedly increased from 2.7 billion euros when LVMH acquired the brand in 2013 to around 11 billion euros today.

Frédéric Arnault, 31 and one of Bernard Arnault's five children, took leadership of the company last year after a career within LVMH that included the CEO position at TAG Heuer at age 25. Since then, he has focused the strategy on strengthening control of the supply chain and integrating specialized skills. The brand's new knitting factory in Ghemme, in the Italian Piedmont region, opens this month and was described as the largest industrial investment in Loro Piana's history.

Arnault also ruled out a strategy of aggressive price increases, arguing that these should follow the quality that customers recognize in the products. According to calculations by Bernstein cited by the Financial Times, the average price of the brand's products increased 67% between 2019 and 2025. The executive considered that the brand's position in the highest segment of luxury helped the company resist the market downturn better, but admitted that consumers of more accessible products may regain weight in the sector.

Why this matters

Readers learn about Loro Piana's strategy, a luxury brand of the LVMH group, which prefers to limit supply instead of maximizing sales, an approach that has protected the brand from the luxury market downturn. Portuguese consumers of luxury products may feel the impact on prices, which have already risen 67% since 2019, and on the availability of items such as White Sole loafers. The company's valuation increase from 2.7 to 11 billion euros since 2013 reflects the success of this exclusivity strategy.

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This is our short summary of a report published by Eco on 15 September 2026 at 17:47; the full text stays with the publisher. In our feed it sits under Business. We currently carry 23366 items in that section.

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