Former Tiffany & Co. CEO Frederic Cumenal (pictured, left) and Robb Report vice chairman David Arnold have joined the board of Lugano Diamonds, the four-store high-end jeweler that was recently purchased by Compass Diversified for $256 million.
Both directors have also become minority shareholders in the company.
Lugano Diamonds was founded in 2004 by CEO Moti Ferder. It has salons in Newport Beach, Calif., as well as Aspen, Colo.; Palm Beach, Fla.; and Ocala, Fla.
“Six months ago, I have to confess, I had never heard of Lugano,” says Cumenal, who served as Tiffany’s CEO from 2015 to 2017 and its president from 2013 to 2017.
But he was impressed by Lugano’s positioning at the very high end of the market—its price points start at $50,000—and its model that prioritizes personalized customer service.
“They have a unique understanding of their customers, and it’s in part based on how they recruit their clients,” he says. “It’s not the typical brand retail approach. They have a strong role in the equestrian world, but they are not your classic sponsor. They know everyone who is riding. They interact with everyone as friends, not as clients or prospects or potential prospects.”
Cumenal, who also serves on the board of Blue Nile, says that Lugano is “just scratching the surface in the United States,” and has opportunities to expand overseas.
“Usually when private equity acquires a company, it’s about transformation and changing a lot of things,” he says. “Here, it’s continuing the company’s growth by providing the company with more financial means. It’s more an acceleration of a trend and continuing of the business model.”
Arnold (pictured, below), who was appointed vice chairman of Robb Report last year and formerly worked at Town & Country, says he has long been impressed by Lugano, which approaches things very differently than most jewelers do.
“They have always focused on the consumer,” he says. “They align themselves with charities, with the ballet, with the local community. They really embed themselves in the community.
“They have an incredibly loyal customer base that comes back again and again, which is unusual in jewelry. They make these really unique pieces of jewelry that are one of a kind, so when women go to balls or different events, they aren’t going to see the same piece on someone else.”
He says that while Lugano has a website, it isn’t really built for online sales.
“Everyone is so obsessed with digital,” he says. “With this type of unique product, it’s difficult to push with a digital experience. It’s a very personal, high-touch experience, and that’s difficult to translate to online.”
He hopes the new investment helps the brand expand and build its name recognition, but he doesn’t see it changing what it does. “They do what they do well. Once you get a competency that is something you do very well, you really should stick to it.”
The company currently has a five-person board. Patrick Maciariello, chief operating officer of Compass Diversified, serves as its chairman.
(Photos courtesy of Lugano Diamonds)
Follow JCK on Instagram: @jckmagazineFollow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine
