Chanel results outperform the luxury segment

Worldwide
Published:  18 June, 2019

The French luxury label has announced strong financial results for the second consecutive year.

After posting a 11% increase €8.3 billion for full 2017, Chanel's turnover grew by double-digits again; +12.5% ​​to €9.9 billion in 2018. According to consulting firm Bain & Company, growth in the luxury sector would be expected between 6% and 8% in 2018. The result positions Chanel just behind Louis Vuitton, owned by the LVMH Group, whose turnover in 2018 exceeded €10 billion, while Gucci, Kering Group's flagship brand, posted sales of €8.28 billion in the same year. Chanel’s growth in 2018 was driven by demands in the Asia-Pacific region, where sales reached €4.21 billion, up 20% year-on-year. Sales in Europe, totalled €3.81 billion, up 7.8%.

Chanel is privately owned by the Wertheimer family, who told Reuters that no IPO is being considered. Following the death of Karl Lagerfeld in February, French national Virginie Viard was appointed as the label’s new Creative Director. Chanel owns Tanneries Haas, Bodin-Joyeux and Megisserie Richard in France, as well as the Colomer Leather Group in Spain.

Sources: L’Usine Nouvelle/Le Figaro

Courtesy: Chanel Facebook