LVMH Strengthens its Control Over Loro Piana

LVMH, which published its quarterly results on Tuesday evening showing a slight rebound (+1% sales in the fourth quarter), acquired Loro Piana, the Italian fashion house specializing in cashmere, vicuña, and extra-fine wool, for €2 billion in 2013. It is currently worth around €10 billion, Bernard Arnault said during the presentation of the results. This has been a highly successful venture for the French luxury goods giant.

The group has just announced the purchase of half of the shares still held by the founding family of the company, which was created in 1942 by Pietro Loro Piana. “This transaction highlights Loro Piana's remarkable and consistent results over the years, which have led to a more than fourfold increase in the company's value since its integration into LVMH, and demonstrates the group's unwavering confidence in the brand's future growth,” LVMH said in a statement.

The transaction is part of a call option provided for in the initial agreement, allowing the group to gradually strengthen its control over the brand. The Loro Piana family will retain the remaining 6% of the Italian company's capital, allowing Maria Luisa and Pier Luigi Loro Piana to continue to sit on the company's board of directors. Bernard Arnault described this decision as “very good,” praising their ability to source “exceptional products.” He also emphasized during the presentation of the results: “Loro Piana continues to perform well. We have only one problem: we need to slow down growth and maintain product quality as soon as things start to get a little out of hand.”

Specializing in the wool trade since the early 19th century, the Loro Piana family has remained faithful to its roots in Quarona, in Piedmont, northern Italy. Over the years, the company has established itself as a leading supplier of high-quality wool and cashmere in Italy and internationally. Today, it sources its raw materials from around the world, including China and Mongolia for cashmere, Australia and New Zealand for extra-fine merino wool, and Burma for lotus flower fiber. It now operates ten production sites, all located in Italy, and has around 180 stores worldwide.
This increase in capital comes at a more mixed time for LVMH, as its fashion and leather goods division, the group's historic driving force, posted a 5% decline for the full year 2025, continuing to suffer from weak global demand after years of exceptional growth.

Finally, the company's governance has recently evolved, demonstrating its importance to the group: on June 10, 2025, Frédéric Arnault, son of Bernard Arnault, was appointed CEO, succeeding Damien Bertrand. The aim is to accelerate growth and maintain the brand's timeless identity and expertise in excellence, a balance that the group considers to be successful for the time being.