Chanel hit by luxury spending dip

Worldwide
Published:  31 August, 2016

The fall in luxury spending in 2015 has badly impacted the operating profits of Chanel, one of the world’s most luxurious fashion brands.

Chanel International’s operating profit dropped 23%, representing U$$1.6 billion, in the year to December 31, 2015. Total revenue was around 17% lower, US$6.24 billion.

The fashion house, privately controlled by billionaires Alain and Gerard Wertheimer, has not disclosed details of geographical regions or specific businesses.

In France, financial figures filed by Chanel filed has shown that 2015 revenues for its cosmetics and perfume businesses were down 21% to US$2.91 billion, year-on-year.

In 2014, Chanel has reported revenue of US$7.5 billion and a net income of US$1.4 billion.

Sources: Reuters/Bloomberg

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