Luxury fashion and accessories brand Loewe, which is owned by the French conglomerate LVMH, has experienced significant sales growth in 2021. The company’s sales reached €456.2 million in the last fiscal year, marking a 38% increase compared to 2020 and a 32% increase compared to 2019. These impressive figures reflect Loewe’s strength in the luxury market and its ability to adapt to changing consumer behaviors.
Operating income for Loewe also saw a substantial improvement, reaching €82.25 million in 2021. This is a significant rise from €5.5 million in 2020 and €44.3 million in 2019. Earnings followed a similar upward trajectory, with the company earning a total of €68.16 million in 2021, which is eight times more than the previous year and 14.5% more than in 2019. These impressive financial results demonstrate Loewe’s ability to generate strong profits and maintain a solid financial position.
The retail division was the main contributor to Loewe’s revenue, generating €299 million, which represents a 41% year-on-year growth. This growth was largely driven by the Asian market, where sales increased by 55% to reach €141.1 million. The Japanese market also saw significant improvement, with sales rising by 28% to €74.7 million. The European market experienced a 26% increase, reaching €59.2 million, while the U.S. market grew by 50% to €23.9 million. These figures highlight Loewe’s strong presence in key markets and its ability to capture the attention of consumers around the world.
In addition to retail sales, Loewe reported multi-brand sales of €111.6 million, a 28% increase compared to the previous year. The brand’s online sales also experienced significant growth, rising by 63% to reach €42 million. This showcases Loewe’s efforts to expand its presence in the digital space and cater to the growing demand for online shopping.
Loewe’s positive performance has resulted in the company bringing €75.62 million in dividends to its parent company, LVMH. This is a substantial increase from 2020 when no dividends were paid. The dividends are comprised of the company’s earnings (€68.16 million) and a €7.46 million final dividend. This demonstrates Loewe’s commitment to providing returns to its shareholders and its ability to generate substantial profits.
Despite its successes, Loewe also faced a tax inspection by Spanish authorities regarding its corporate income tax payment for the 2016 and 2017 financial years. A notice for inspection was issued in March 2022. However, this is a minor setback in the grand scheme of Loewe’s impressive performance.
Overall, Loewe’s strong sales and financial performance emphasize the brand’s position as a leader in the luxury market. Its ability to adapt to changing consumer behaviors, expand into new markets, and maintain a strong presence in key regions, particularly Asia, has contributed to its continued success. With its ongoing commitment to innovation and quality, Loewe is well-positioned to further solidify its status as a top luxury fashion and accessories brand.
Useful links:
– Loewe Official Website
– LVMH Official Website
