Chanel nears $20B in sales in 2023

PARIS — French luxury brand Chanel said on Tuesday that its sales jumped last year to a record just shy of $20 billion, although profits only edged higher.

Sales climbed by 14.6 percent to $19.7 billion last year, with double-digit growth across its fashion, fragrance and jewelry products.

Meanwhile, net profits rose by 3 percent to $4.7 billion, a slowdown from the 14.3-percent profit growth registered in 2022.

BOOST This photograph taken on Nov. 28, 2019 shows the logo of the luxury brand Chanel in Tokyo. French luxury fashion company Chanel announces another ‘exceptional’ year, as 2023 sales went up 14.6 percent to $19.7 billion on May 21, 2024. AFP PHOTO 

Chief Executive Leena Nair said Chanel had made significant investments in research and development, expanded its retail distribution network and added staff to enable further growth.

The 2023 financial results “underline sustained investment in building the desirability of our brand, creating the ultimate luxury experience for our clients and supporting our people to grow and develop,” she said.

Since the third quarter of last year, the luxury sector has seen growth slow in the key European and US markets, while China has disappointed.

Privately held Chanel doesn’t provide a quarterly breakdown of its results, but Chief Financial Officer Philippe Blondiaux said “sales increased in each of our markets as retail teams continued to nourish relationships with our local clients, while also embracing the continued return of tourist travel around the world.”

Chanel saw its sales in the Asia-Pacific region climb by 17.7 percent to more than $10 billion. The rise was even higher in Europe, at 18.8 percent, to $5.6 billion.

But the growth was a slower 2.6 percent to $3.9 billion in North America.