Chanel, the French fashion house, reported a 13% annual growth in revenue, reaching $12.3 billion. For the first time since the launch of the brand, sales exceeded the mark of $12 billion, while the growth in operating profit amounted to 16.6%, reaching a mark of $3.49 billion.
Chanel started publishing financial reports in 2018 when the reported revenue of the luxury fashion house reached $9.62 billion. Today, as well as three years earlier, Chanel is one of the best-selling luxury brands, second only to Louis Vuitton in terms of revenue.
Chanel finished last year without the leadership of Karl Lagerfeld, who died in February. The position of the creative director was taken by Virginie Viard. According to the annual report, sales of clothing and accessories increased by 28% year-on-year, with double-digit revenue growth “in all regions and all product lines.”
The company expects that its key business indicators will remain under pressure throughout 2020-2021. Most of Chanel’s stores and factories were closed within two months amidst restrictions in the United States, Europe, and Asia. To date, about 85% of the French brand’s stores have been restored. In 2020, the company expects to make a profit.
