Chanel reports 28% drop in full-year profit to $4.4b
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A model presenting a creation by French fashion house Chanel as part of their Cruise 2025/2026 collection.
PHOTO: REUTERS
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PARIS – French luxury group Chanel said on May 20 that it suffered a 28.2 per cent drop in net profit to US$3.4 billion (S$4.4 billion) in 2024 because of “challenging” conditions in some markets.
“We saw challenging macroeconomic conditions, which had an impact on sales in some markets,” Ms Leena Nair, the chief executive of the fashion house, said in a statement.
Global revenue dipped 5.3 per cent to US$18.7 billion.
It said the headwinds raise questions over whether it will raise prices, as it typically does twice a year, in March and in September.
Several rivals, such as Hermes, have already hiked their prices to compensate for the 10 per cent tariffs into the US market ordered by President Donald Trump.
Chanel’s chief financial officer Philippe Blondiaux told Vogue Business that the situation with the US tariffs was “extremely volatile” and “we are waiting to see what will be the outcome of all the ongoing discussions” before deciding.
Chanel’s 2024 sales in North and South America dipped 4.3 per cent, while those in the Asia-Pacific region plummeted 9.3 per cent.
Revenues from European sales rose 1.2 per cent.
Chanel said it made “record” investments in 2024, notably acquiring prestige properties in Paris and New York and expanding its global network of stores, including in China and Japan. It planned to pursue that path by expanding further in China, as well as in India and Mexico.
Ms Nair told Vogue Business that China was “one of the most dynamic and important markets for the luxury ecosystem” and Chanel had opened 15 new stores there in 2024 and planned to open another 15. AFP
