Chanel revenue fell 18% during pandemic

France
Published:  17 June, 2021
Credit: Chanel

The French luxury fashion house has released its full-year results for 2020, which demonstrated a resilient performance in the face of the Covid-19 pandemic despite an 18% fall in revenue compared with 2019. 

Revenue was US$10.1 billion, down 18% compared to 2019 on a comparable basis at a constant currency rate. Operating profit of US$2,049 million was down 41.4% compared with 2019.

Chanel had a record level of capital expenditure at US$1,120 million, representing 11.1% of sales as well as free cash flow of US$679 million, down 70% compared to 2019.

Sales trends in the fashion department were heavily influenced by the Covid-19 pandemic. Trading was significantly impacted by Covid-19 related restrictions, but Chanel reacted quickly by accelerating the development of new client facing tools with specific content, including an app launched in May in different regions, linking established clients to its fashion advisors and providing concierge shopping services.

Chanel says that it has invested US$1,120 million in capital expenditures in 2020, an all-time high in its history, confirming the financial strength of the house as well as its confidence in the future.