Loewe Sales Soar While Profit Dips Amidst Creative Shakeup

Loewe SA, the primary operating entity of the esteemed LVMH-owned luxury brand, has continued its impressive growth trajectory, reporting a turnover of €885.2 million for the 2024 financial year. This figure represents a robust 9.2% increase compared to the previous year. While LVMH typically refrains from detailing financial results by individual brand, and this entity's performance does not fully encapsulate the company's entire operations, these statistics provide valuable insight into the brand's current positive momentum in the global luxury market.

Despite the strong sales performance, Loewe experienced a notable decline in its net income. According to the business daily Expansión, which cited accounts filed with the Mercantile Registry, the company's profit decreased by 24% year-over-year, settling at €157 million. This reduction in profitability was primarily attributed to a widespread increase in operating costs across the company. The entirety of this profit was subsequently distributed to shareholders, with the majority being affiliated with LVMH through its Dutch (76.72%) and French (23.28%) subsidiaries. Over the past four financial years, Loewe has cumulatively distributed more than €600 million in dividends to the luxury conglomerate.

Geographically, the Europe, Middle East, and Africa (EMEA) region emerged as the leading market, contributing €246.8 million and demonstrating a significant 18.7% growth. Japan and the United States also delivered strong performances, registering growth rates of 27.6% and 31.2% respectively, highlighting their crucial role in the brand's international expansion. Conversely, the rest of Asia experienced a challenging period, recording a 13.8% decline in activity, bringing its contribution down to €193 million.

Analyzing distribution channels, wholesale operations generated €129 million, while online sales accounted for €21.3 million, underscoring the increasing importance of digital platforms. Furthermore, the company's equity holdings contributed an additional €18.5 million to its overall revenue.

Founded in Madrid in 1846 and celebrated for its rich artisanal heritage, Loewe recently announced a significant change in its creative leadership. As of March 2025, the designer duo Jack McCollough and Lázaro Hernández, founders of the acclaimed brand Proenza Schouler, will take the helm as creative directors. They succeed Jonathan Anderson, who departs after a decade of transformative work at Loewe to fully concentrate on his new role leading Dior, another pivotal house within Bernard Arnault's luxury empire.