French luxury group Chanel’s full-year profit fell 28% due to “challenging macroeconomic” conditions
French luxury goods group Chanel said on Tuesday that net profit fell 28.2% last year due to “challenging” conditions in some markets.
“We see challenging macroeconomic situations that have impacted sales in certain markets,” Fashion House CEO Leena Nair said in a statement. Global revenue fell 5.3% to $18.7 billion.
It said the headwind raised the question of whether it would raise the price, as it usually takes twice a year in March and September.
Competitors raise prices
Several competitors such as Hermes have raised prices to compensate for the 10% tariff ordered by President Donald Trump.
Chanel’s chief financial officer Philippe Blondiaux told Vogue Business that the situation in U.S. tariffs was “extremely volatile” and that “we are waiting for the results of all the ongoing discussions before the decision”.
Chanel’s sales in North and South America fell 4.3% in 2024, while sales in the Asia-Pacific region fell 9.3%. European sales revenue increased by 1.2%.
Chanel said it made “record” investments in 2024, particularly in the acquisition of prestigious properties in Paris and New York and expanded its global store network, including China and Japan. It plans to pursue this path by further expansion in China, as well as in India and Mexico.
Nair told Vogue Business that China is “one of the most dynamic and important markets in the luxury ecosystem”, where Chanel opened 15 new stores there last year and plans to open another 15.
