LOEWE reports profit decline of 24 percent in 2024

LOEWE leaves behind the frenetic evolution of recent years. In Jonathan Anderson ‘s last year as creative director, the Spanish firm controlled by LVMH has put the brakes on its growth rate and has drastically reduced its profitability, with a decline of more than 24%.

According to the accounts corresponding to the company Loewe SA, recently filed with the Mercantile Registry, the company ended 2024 with a turnover of €885.26 million, which represented a growth of 9.17% over the previous year. By 2023, the company had recorded a boost of more than 30% in turnover, to €810.88 million.

The contraction in the rate of growth has been accompanied by a reduction in profitability. The luxury firm ended 2024 with an operating profit of €196.56 million, down 20.61% from 2023. The company attributes the increase in operating expenses to ordinary activity.

At the end of 2024, Loewe posted a net profit of €157.06 million. This figure represented a reduction of 24.26% compared to 2023, when the company managed to increase its net profit by more than 62%. Loewe posted a net profit of €157.06 million, down 24%, compared with a 62% rise in 2023

Loewe has become one of the fastest growing luxury brands in recent years, driven by the Jonathan Anderson effect at the head of its creative area. The company has been affected in 2024 by the widespread crisis in the luxury sector, just in the fiscal year in which it has said goodbye to its creative director, who last June took the reins of Dior. Jack McCollough and Lazaro Hernandez, founders of Proenza Schouler, have taken over from Anderson.

The company has suffered especially in Asia (excluding Japan), where its sales have contracted by 13.81% in the last fiscal year. With €192.99 million of revenue in 2024, Asia accounts for 27.66% of the luxury brand’s retail business. The company’s first market continues to be Europe, Middle East and Africa, with 35.37% of the retail channel’s turnover. In Emea, the company increased its revenues by 18.68% in 2024, to €246.80 million.

Loewe posted a 31.11% increase in revenues in the United States, to €85.01 million, while in Japan the company grew by 27.56%, to €172.92 million. The retail channel accounted for 78.81% of Loewe’s revenues at the end of 2024, with a total workforce of 479 people. In both the retail and wholesale channels, the company recorded an increase in revenues, while in ecommerce, which represents only 2.41% of the total, the company fell by 13.45%.

Headquartered in Madrid, much of Loewe’s business is based in Paris. Loewe SA is only one of Loewe’s companies, although it is the main one in terms of turnover and employees. It is joined by Perfumes Loewe, Loewe Hermanos SA (dedicated to retail) and Manufacturas Loewe SL, in addition to subsidiaries in most of the markets in which it operates.

LOEWE