In France, business is fraught with diplomacy and politics. what counts is profits.'' When the Socialists switched to a more conservative economic course in 1983, Arnault returned to France. Back home, he persuaded the government to sell him the bankrupt Willot textile empire at a bargain price. The hodgepodge of losers ranged from retail stores to a diaper company. What Arnault wanted most was couturier Christian Dior, which he considered the group's overlooked gem. Reorganizing the company, Arnault fired more than 8,000 employees including 90 at headquarters. ''All they did was go out to lunch and spend money,'' he says. He sold off much of the revamped textile business in 1987 for more than $200 million and concentrated on Dior. Arnault is cool to subordinates. One manager finally screwed up the courage to ask the boss to lunch after working for him for several years. ''Really?'' replied Arnault. ''Do we have anything to say to each other?'' Slim and elegant, graced with long, delicate fingers, he once dreamed of being a concert pianist. He continues to practice religiously.
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