Frédéric Arnault, one of LVMH CEO Bernard Arnault’s five children, will helm Italian luxury label Loro Piana.
Frédéric was appointed CEO of watchmaker Tag Heuer in 2020, and in 2024, he became the boss of LVMH’s entire watch division.
His move from watches to luxury apparel comes amid a broader executive overhaul at the French conglomerate. LVMH’s sales have slowed in recent years, particularly affecting the company’s spirits, leather goods, and jewelry segments.
Damien Bertrand, the current head of Loro Piana, will become deputy CEO of Louis Vuitton and will join LVMH’s executive committee next year. Frédéric will join the brand in March during Bertrand’s transition period before officially taking over in June.
Alexandre, another of Arnault’s children, became the deputy head of Moët Hennessy last month after stints at Tiffany and Rimowa.
Loro Piana has been among the strong performers at LVMH despite the pullback in high-end spending. It’s among the brands with the greatest momentum within the luxury sector, Bank of America analysts noted in January.
Any transitions within the Arnault family draw a lot of eyeballs, rekindling discussions about who might succeed Europe’s richest man.
Although Bernard has no plans to retire anytime soon, his children are being groomed with key leadership roles at LVMH. Four of the five children have a seat on the company’s board.
Loro Piana and the embrace of ‘quiet’ luxury
Loro Piana is an interesting choice for Frédéric. The brand, known for its cashmere apparel and loafers, has been a part of LVMH’s portfolio since 2013.
While some of LVMH’s other brands might be bigger, Loro Piana is a heavyweight in its own right. Analysts estimate that it makes about $2.7 billion in revenue, making it the third-largest brand after Louis Vuitton and Dior, the Wall Street Journal reported.
The Italian brand was frequently featured in the TV show Succession, which explores the dynamics involved in an influential business family. LVMH is led by a family dynasty of its own, with the 76-year-old Bernard as the patriarch.
The happenstance aside, Loro Piana marked a turning point for the luxury sector as “soft” or “quiet” luxury started to gain traction. Following the COVID-19 pandemic, shoppers opted for more understated forms of high-end goods (or “stealth wealth,” if you will) as economic pressures priced many people out of luxury purchases.
Think Bruno Cucinelli’s coats and Swatch’s Omega watches—these brands avoid flashy logo designs and opt for minimalism.
Loro Piana, the 100-year-old Italian brand, sells loafers that can cost up to £8,600. But unless you’re a true aficionado or look very closely, Loro Piana’s products are discreet about branding.
Investors have also paid attention to the trend, noting that LVMH, Richemont, and Prada have benefited from all things “quiet.”
A strategic move?
Frederic didn’t start his career at LVMH—he worked at McKinsey and Facebook, and even cofounded an electronic payments startup before joining the family business. During his time at Tag Heuer, he was instrumental in a 10-year deal between LVMH and the Formula One franchise.
Moving 30-year-old Frédéric likely has a strategic reason. When his brother Alexandre’s shuffle was announced in November, law firm Lewis Silkin’s partner Alan Hunt told Fortune that it reflects Bernard’s “careful strategy of preparing the next generation with high-impact roles across the group’s portfolio.
Frédéric will be responsible for growing one of the strongest-performing brands in LVMH’s largest segment by revenue.
Loro Piana faced scrutiny last year when reports accused it of using rare vicuña wool to make $9,000 sweaters without fairly compensating Indigenous communities. The brand has denied the allegations.
Frédéric will report to his father’s former deputy and head of LVMH Italy, Toni Belloni.
Representatives at LVMH pointed Fortune to the official press release announcing the executive changes when approached for comment.
