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Loewe's Leather Focus
PARIS
-- While diversification proved a popular path for many luxury brands in the past decade, the opposite strategy -- a laser focus on core products --can be equally fruitful.
A case in point is Loewe, which today opens its largest store in the world in Barcelona, capping off a banner year for the Spanish brand, owned since 1996 by French luxury giant LVMH Moet Hennessy Louis Vuitton.
"It was more about getting back to the pillars of the brand," explained Pierre-Yves Roussel, chief executive officer of LVMH's fashion division, calling Loewe, founded in 1846, "probably the oldest leather handbag brand in the world."
Indeed, LVMH kingpin Bernard Arnault -- while prone to trumpeting the prowess of his "star brands," particularly Louis Vuitton and Dior -- gave the Spanish player special mention at February's results presentation, along with Celine, another brand under Roussel's purview.
"We are generating remarkable growth numbers," Arnault said of the brands at the time. "I'm not promising another Louis Vuitton, but we certainly expect new businesses of the same caliber."
Roussel declined to discuss figures, but it is understood Loewe is profitable and logged double-digit sales growth in 2011, including in recession-ravaged Spain and in earthquake-stricken Japan.
Market sources estimate the company generates annual revenues of 250 million euros, or $327.9 million, putting it in the league of prominent European fashion players like Lanvin and Balenciaga.
Roussel credited Loewe ceo Lisa Montague and creative director...