Loro Piana is focusing on scarcity and exclusivity, steering clear of rapid growth and mass appeal to maintain its luxury status. According to Bertrand, the brand aims for discretion rather than widespread branding, operating 145 standalone stores globally, with 29 in mainland China. While LVMH doesn't disclose individual brand earnings, Loro Piana's annual revenues are estimated around €1 billion, with 2024 revenue reported at €1.609 billion and net income at €389 million, making it LVMH's third-largest fashion brand by revenue.
The brand's strategy emphasizes "investment pieces" that are high-quality and long-lasting, rather than following ephemeral fashion trends. This approach allows Loro Piana to command significant pricing power; for instance, its CashDenim jeans start at £1,080. Analysts confirm the brand's strong performance, noting that the higher end of the luxury market, where Loro Piana operates, has shown resilience during challenging economic times. The brand also highlights its material sourcing, featuring products made from undyed dark merino wool and historic Scottish Cheviot wool, and through its annual Record Bale competition, which rewards farms for producing extremely fine wool.
Despite a recent controversy regarding its vicuña sourcing practices in Peru, Loro Piana states that the issue has not impacted sales, and analysts concur. The brand was acquired by LVMH in 2013 for €2.57 billion for an 80% stake, and LVMH has since increased its stake to 94% for an additional €1 billion. Since the acquisition, Loro Piana has undergone a repositioning, including collaborations with artists like Hiroshi Fujiwara and brands like New Balance, alongside developing new categories such as jewelry, handbags, and interiors, while still maintaining its focus on understated luxury.
