French luxury fashion house Chanel is back on track for growth in 2025 thanks to demand in Europe and America. This makes the company stand out in a slowing global luxury market.
The company reported sales of $19.3 billion (16.6 billion euros). This corresponds to an increase of three percent, or 1.8 percent on a comparable basis, according to a statement published on Tuesday. The growth was driven by all business areas.
During this period, the fashion house founded by Coco Chanel recorded a net profit of $2.9 billion. That’s a decrease of 14.3 percent. The company, known for its tweed costumes and ‘N°5’ perfume, gave no explanation for the decline. However, operating profit rose by 5.2 percent to $4.7 billion.
“Chanel delivered a solid financial performance in 2025, driven by growth across all business areas. This result reflects our continued commitment to investing in our expertise, global boutique network and customer experience,” said Chanel CFO Philippe Blondiaux.
Luxury groups are looking for new growth drivers after being confronted with declining demand after several successful years. In this environment, Chanel was able to stand out from some of its competitors.
Last year, the French luxury goods group LVMH reported a five percent decline in sales to almost 81 billion euros. For its competitor Kering, the result was even more significant, with a decline in sales of 13 percent to 14.7 billion euros. Hermès, on the other hand, was able to increase its sales by 5.5 percent.
Dynamic ready-to-wear
Regionally, sales in Asia Pacific, Chanel’s main market, stagnated at $9.2 billion last year, a slight decline of 0.6 percent. This is a significant improvement from 2024, when sales in the region fell by more than nine percent. The reason for this was a sharp decline in demand in China, which has long been one of the most important growth engines for the luxury market. “China returned to growth in the fourth quarter of 2025 and this momentum has continued in 2026,” Blondiaux said in an interview with the Bloomberg agency.
Europe performed well with sales increasing by 6.7 percent to $6.1 billion. The American continent also recorded growth of 6.4 percent to four billion US dollars.
The fashion house, owned by the Wertheimer brothers, is one of the few in the fashion and luxury industry that is still independent. Chanel does not publish financial figures for its individual divisions. However, the company said the fashion collections were supported by the momentum of ready-to-wear and customer enthusiasm for the new ‘Chanel 25’ bag campaign.
Perfumes and care products were the main drivers in the perfumes & beauty sector. According to the company, the success of ‘Chance Eau Splendide’ in particular contributed to this. It is the first new women’s fragrance in eight years.
Growth in watches and jewelry was driven by the ‘Coco Crush’ collection and strong performance in the US, Chanel said. New boutiques opened in Sydney, Bangkok and Hong Kong. This marks an important milestone in the development of Chanel’s watch and jewelry business in Australia and Asia.
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