Despite a struggling luxury market, Chanel returns to growth in 2025

Paris - Chanel returned to growth in 2025 thanks to demand in Europe and the Americas, performing well amidst a slowdown in the global luxury market.

The company reported a turnover of 19.3 billion dollars (up 3 percent, and 1.8 percent on a like-for-like basis), boosted by growth across all its activities, it stated in a press release on Tuesday.

During this period, the house founded by Coco Chanel, famous for its tweed suits and No. 5 perfume, posted a net profit decline of 14.3 percent. The profit fell to 2.9 billion dollars, and the company did not explain the reason for this decrease. Its operating profit, however, rose by 5.2 percent to 4.7 billion dollars.

"Chanel achieved a solid financial performance in 2025, driven by growth across all its activities. This result reflects our constant commitment to investing in our expertise, our global network of boutiques and the customer experience," said Philippe Blondiaux, the chief financial officer, quoted in the press release.

Luxury groups are seeking new growth drivers after a series of boom years, now facing declining demand. Chanel has stood out compared to some of its competitors. Last year, LVMH reported a 5 percent drop in sales to nearly 81 billion euros. For its compatriot Kering, the situation was even more challenging, with an annual sales drop of 13 percent to 14.7 billion euros. Hermès, however, saw its sales climb by 5.5 percent.

Dynamic ready-to-wear

By region, Asia-Pacific, Chanel's main market, saw sales stagnate last year (down 0.6 percent to 9.2 billion dollars). This is a clear improvement compared to 2024, when sales in the region had fallen by more than 9 percent. The decline was due to a sharp slowdown in Chinese demand, which has long been one of the most important growth drivers for the luxury market.

"China returned to growth in the fourth quarter of 2025 and this momentum has continued into 2026," Philippe Blondiaux said in an interview with Bloomberg. Europe performed well with sales increasing by 6.7 percent to 6.1 billion dollars, as did the Americas (up 6.4 percent to four billion dollars).

The house, owned by the Wertheimer brothers, is one of the few in the fashion and luxury sector to remain independent. Chanel does not publicly disclose the financial performance of each of its divisions. However, it indicates that its Fashion collections were supported by the dynamism of ready-to-wear and customer enthusiasm for the new Chanel 25 bag campaign.

Fragrances and skincare were the main drivers of the Fragrance and Beauty division's performance, according to the company. It cited the success of Chance Eau Splendide, a new women's fragrance and the first in eight years.

Growth in the watches and jewellery business was driven by the Coco Crush collection, combined with a solid performance in the US, Chanel said. New boutiques have opened in Sydney, Bangkok and Hong Kong, marking a key stage in the development of Chanel's watches and jewellery business in Australia and Asia.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Chanel