Loewe resets China leadership to restore Asia growth and margins in 2026
Bottom Line Impact
If China retail productivity and clienteling improve under new leadership, Loewe can re-accelerate Asia growth and rebuild margins after 2024 profit declines, strengthening competitive positioning in China; if execution lags, fixed-cost retail exposure will likely keep margin compression and dilute brand equity through higher commercial pressure.
Key Facts
5- Leadership change: Eva Baquedano becomes president of Loewe China starting early 2026; prior China lead Mark Shorten moves to Givenchy as global sales director.
- Scale and exposure: China region (incl. China, Hong Kong, Taiwan, Macau) accounts for over 25% of Loewe's retail business; Asia is organized into China, Japan, South Korea and Southeast Asia divisions.
- Retail footprint: 37 stores in mainland China plus 18 in Hong Kong, Taiwan and Macau; largest Asia store opened in Shanghai Jing'an in early 2025 (685 square meters, 'Loewe House' concept).
- Financial trajectory: 2024 revenue was 885.26 million euros (+9.17% YoY) versus +30% growth in 2023; Asia (ex-Japan) revenue fell 13.81% to 192.99 million euros.
- Profit pressure: 2024 operating profit was 196.56 million euros (-20.61% YoY) and net profit was 157.06 million euros (-24.26% YoY).
Time Horizons
Key Roles Affected
Executive Summary
Loewe is appointing a China president effective early 2026, signaling a focused operational reset in a market that represents over 25% of retail sales and where Asia (ex-Japan) declined 13.81% in 2024. The move shifts emphasis from brand heat to retail productivity, clienteling and omnichannel execution to protect profitability after operating profit fell 20.61% and net profit fell 24.26% in 2024.
Actionable Insights
Immediate Actions (Next 30-90 days)
Set a 2026 China turnaround scorecard with 4-6 non-negotiable KPIs (conversion, repeat rate, full-price sell-through, VIC share of sales, store contribution margin) and assign single-threaded ownership with monthly cadence reviews.
Rationale: Leadership changes only translate into performance if the organization is forced onto a measurable operating system; this is critical given Asia (ex-Japan) fell 13.81% while profits declined over 20%.
Role affected:CEO
Urgency level:immediate
Implement a 90-day clienteling sprint in Shanghai and Beijing: re-activate top 5-10% clients, tighten appointment selling, and enforce weekly outreach targets per associate supported by unified CRM across mainland and greater China.
Rationale: Baquedano's background in omnichannel and customer management indicates the intended lever is customer activation; rapid wins will de-risk the leadership transition and support full-price sell-through.
Role affected:CCO/Head of Retail
Urgency level:immediate
Short-term Actions (6-12 months)
Run a China store-by-store profitability and payback reset before 2026 budgeting: classify doors into invest, optimize or exit; redirect capex from low-ROI expansions to CRM, staffing and high-performing flagships.
Rationale: With operating profit down 20.61% in 2024, improving retail operating leverage is the fastest path to stabilizing margins without brand-damaging promotions.
Role affected:CFO
Urgency level:short-term
Strategic Actions
Shift China marketing spend mix toward measurable retail outcomes: local-festival capsules (for example Qixi) tied to store events, VIC exclusives and content that drives appointments, not just reach; codify 2-3 annual brand moments anchored in the Shanghai 'Loewe House'.
Rationale: Loewe has already invested in local connection (Crafted World, festivities, major store opening); the next step is converting awareness into higher repeat and cross-category penetration.
Role affected:CMO
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Execution gap risk: leadership change may not quickly translate into higher store productivity, extending Asia (ex-Japan) weakness and sustaining profit pressure into 2026.
- Overexposure to fixed retail costs: flagship-led strategy (for example 685 square meter Shanghai store) increases operating leverage downside if traffic and conversion remain soft.
- Brand heat normalization: post-rapid growth period (+30% in 2023 to +9.17% in 2024) raises the risk that demand was partly momentum-driven, requiring stronger retention and product icon strategy.
Primary Opportunities
- Retail productivity upside: even modest improvements in conversion and full-price sell-through across 37 mainland stores can materially lift China contribution margin and stabilize Asia results.
- Omnichannel and CRM moat: leveraging unified clienteling across mainland and greater China can increase VIC share of sales, reduce reliance on broad traffic, and improve repeat purchases.
- Localized cultural relevance at scale: systematizing China-first activations (festivals, local storytelling, Shanghai flagship as a content engine) can differentiate versus competitors using more generic global campaigns.