for any of you who doesn’t know it, Loro Piana is an historic italian brand known for its luxury wool and cachmere products. The company’s capitalization on the market is of 1,4 billion euros, which is pretty much half the money Arnault spent in the transaction, but its sales volume for the year 2012 was of 700 millions. What makes this a even better investment is the fact that Loro Piana has been passing on for 6 generations a traditional textiles manufacturing which allows the production of extremely high quality fabrics.
It will be really interesting to see how the brand will evolve under LVMH, considering the fact that Loro Piana has always been extremely attached to traditional values and has always relied more on quality and manufactoring of their products rather than on publicity to increase the sales. They don’t even show at Fashion Week but only do a private screening.
A friend of mine works in the fabric manufacturing department for them, as soon as she comes home i’ll ask her how things are going.