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Loro Piana CEO Frédéric Arnault Prioritizes Scarcity Over Growth

Financial Times Companies •
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Loro Piana CEO Frédéric Arnault has vowed to prioritize exclusivity over short-term sales growth, deliberately undersupplying demand for signature products like the €1,000 White Sole loafers. In his first interview since becoming chief executive last year at age 30, Arnault told the Financial Times that "sometimes short-term growth can be to the detriment of long-term sustained success." This strategy contrasts with more aggressive approaches at brands like Gucci and has helped Loro Piana weather the luxury downturn: revenue rose 7.5% to €1.72bn last year, with net profits up 12% to €434mn. The brand's enterprise value has grown from €2.7bn at LVMH's 2013 acquisition to about €11bn today.

Arnault, the second-youngest of Bernard Arnault's five children, acknowledges succession pressure but says he embraces it. His appointment is seen as a test for eventually leading LVMH. Since taking over, he has focused on tightening supply-chain control to secure scarce raw materials like vicuña fibre — jackets made from it can exceed €20,000 — and bringing craftsmanship in-house. This follows an Italian court temporarily placing Loro Piana under judicial administration last year over alleged worker exploitation at subcontractors; Arnault said a supplier concealed unauthorized subcontracting and capacity checks failed to detect the issue.