Chanel posts sharp decline in annual revenues and profit

French luxury goods maker Chanel has blamed sharp decline in luxury spending last year for 23 percent drop in operating profit to 1.6 billion dollars and 17 percent decline in revenue to 6.24 billion dollars, in the year to December 31,2015.

Revenues of its cosmetics and perfume business declined 21 percent to 2.6 billion euros (2.9 billion dollars) last year. The company plans to re-launch its once popular perfume No. 5 under the new version called ‘No. 5 L'eau’, to boost sales of its perfumes division.

Chanel had announced departure of its head Maureen Chiquet in January, who was then replaced by Alain Wertheimer.

Picture:Facebook/Chanel