Chanel, regarded for a long time as a pioneer of the global luxury market, reported a decline in sales from 4.3 percent to $ 18.7 billion in 2024, since economic pressure and the changed consumption behavior burdened the industry.
According to the results published on Tuesday, the operational profit fell more clearly, namely by 28.2 percent to $ 4.5 billion. This downturn is a remarkable contraction in one of the most resistant houses in the sector, which is known for its ability to oppose wider market turbulence.
Chanel CEO: challenging time in the world
The slowdown is in line with a more comprehensive malaise that affects the high-end fashion and luxury sector. Industry giants such as LVMH and Kering have reported weaker results weaker than expected. In the first quarter of 2025, LVMH reported sales of 20.3 billion euros, which corresponds to a decrease of 2 percent compared to the previous year. The company’s fashion and leather goods division, which includes brands such as Louis Vuitton and Dior, recorded a decline in organic sales by 5 percent. During the same period, Kering reported a decline in sales of 14 percent, which is mainly due to a significant decline in sales of 25 percent in the Gucci advance brand.
Chanel CEO Leena Nair directly spoke to the macroeconomic headwind: “It is a challenging time in the world … and it is still challenging.” In conversation with investor: Inside Nair underlined the long -term vision of the company and his commitment to strategic investments despite the current pressure.
Chanel was founded in 1910 and often differentiated from his industry colleague: in the inside by being privately owned and is independent. In contrast to listed competitors: Inside, the French fashion house is not the demands of shareholders: Subscribe inside, which enables him to see a level of strategic patience that is rarely seen in the industry.
In response to the downturn, Chanel places a new focus on his fashion sector. The fashion house will shortly present its first collection under the direction of Matthieu Blazy, the former creative director of Bottega Veneta, who came to Chanel at the end of 2024. Blazy’s appointment follows the silent farewell to Virginie Viard and signals a new creative orientation for the brand, with industry experts: in the inside expecting a stronger turn to ready-to-wear innovation.
It is still speculated via a possible men’s line – a remarkable departure for a house that has long focused on women’s fashion, accessories and beauty. Although Chanel has never formed the men’s market, this step would reflect both the commercial possibilities and the developing landscape of luxury consumption.
Regardless of the general decline in profits, Chanel increasingly relies on one of his most resistant sources of income: fragrances and cosmetics. The company opened 53 independent beauty boutiques, with another 48 openings planned for 2025, which strengthens its direct-to-consumer model (DTC), reports the business magazine Business of Fashion. Chanel’s expansion in this segment takes place in the middle of an increasing competition and a more price-sensitive consumer area field in the beauty area-a category that is wide-ranging, but has lower margins and lower Mark Exclusivity compared to the Haute Couture.
The market for fragrances and cosmetics is not without challenges. Nevertheless, Nair confirmed Chanel’s long -term approach: “We stick to our investments because we always pursue a long -term approach. We have experienced many ups and downs in the 100 years of our existence, and we always use this moment to concentrate and strengthen what makes us unique ‘Chanel’.”
Industry analyst: Inside, assuming that Chanel’s market power, which is based on the brand and scarcity, is still a huge protective wall. China in particular has opportunities for the French luxury house.
This article was used with digital tools translated.
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