On July 8, 2013, LVMH announced the acquisition of a majority stake in Loro Piana. The company’s heads, Sergio and Pier Luigi Loro Piana, will remain in their current roles. Following are some key facts and figures about this family-owned enterprise, a benchmark in high-quality ready-to-wear.
Founded: 1924, by Pietro Loro Piana in Quarona, in Italy’s Piedmont region. The current heads are the sixth generation of the Loro Piana family to work in fine textiles.
Positioning: High-end apparel (womenswear: 60%; menswear: 40%).
Specialties: Clothes made from top quality materials (notably vicuna, cashmere, Merino wools, and lotus flower fiber).
Iconic products: cashmere jackets and sweaters; vicuna garments
Unique features: Vertically integrated production, guaranteeing access to research and development, as well as the finest raw materials, with complete control over production processes at every stage.
Main markets: China, United States, Europe (46% of sales in Europe, 30% in Asia)
Stores: 130 stores worldwide, including 5 in France
Projected 2013 sales: 700 million euros
Pretax net income: 150 million euros (20% of sales)
Ownership (subject to approval by competition authorities):
– LVMH: 80%
– Loro Piana family: 20%
Enterprise value after acquisition by LVMH: 2.7 billion euros
Philanthropy: investments in natural reserves in Peru and Argentina ($1.6 million) to protect vicuna from extinction and support sustainable wool production.