Lugano Diamonds & Jewelry Inc., bringing greater luxury expertise into the business to further its growth, has appointed Frederic Cumenal, a former president and chief executive officer of Tiffany & Co., to its board of directors.
David Arnold, vice chairman of Penske Media Corp.’s Robb Report, which covers the luxury industry, was also named to Lugano’s board. (PMC also owns WWD.)
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Cumenal and Arnold each made an investment in Lugano, becoming minority shareholders.
There are now five members on the Lugano board: Lugano’s founder and CEO Moti Ferder; two individuals from Compass Diversified, or CODI, which purchased Lugano last September, as well as Cumenal and Arnold.
Founded in 2004 and headquartered in Newport Beach, Calif., Lugano is a designer, manufacturer and marketer of high-end, one-of-a-kind jewelry. Lugano operates four retail salons, in Newport Beach, Calif.; Aspen, Colo.; Palm Beach, and Ocala, Fla., as well as pop-up showrooms at events that Lugano participates in.
Cumenal was Tiffany’s president from 2013 to 2017 and CEO from 2015 to 2017. Prior to Tiffany, he spent 15 years at LVMH Moët Hennessy Louis Vuitton and served in several senior roles, including CEO and president at Moët & Chandon S.A.
Compass acquired Lugano for an enterprise value of $256 million, excluding working capital and certain other adjustments upon closing. Lugano continues to be headed by its current leadership team, and existing owners and management retains a significant minority stake in the company.
Compass Diversified has 10 majority-owned subsidiaries engaged in a variety of businesses including technical apparel and gear; packaging, insulation and componentry; wearable baby carriers and baby strollers; lighting; airguns, archery products, optics and related accessories; home fragrance; baseball and softball equipment and apparel; portable food warming systems, and now with Lugano Diamonds, high-end, one-of-a-kind jewelry.
“With its new ownership, the management team is staying in place and the company will have access to capital, to grow faster by acquiring more stones of high quality, continue to roll out retail, and expand marketing. This is a fantastic opportunity. I never heard of this company six months ago, but what they are doing is just amazing,” Cumenal told WWD. “They’re state-of-the-art and different from any competitors. Everything is at least $50,000. It is a company focusing exclusively on high-end, one-of-a-kind jewelry. Looking at the competition, you don’t have anyone in the jewelry sector focusing on this level of exclusivity.
“It’s a relationship strategy that drives a lot of business,” Cumenal added. “The founder and his wife and the team at Lugano are really in love with their clients. I am confident that the combination of world-class, one-of-a-kind designs, intimate retail environments, and building long-lasting client relationships has the company poised for long-term success.”