Like its peers, Chanel achieved a solid financial performance in 2023. The French luxury group posted record annual sales for the third year running, largely thanks to a strategy of price increases. The House founded by Coco Chanel also continues to expand its network of boutiques and invest in ambitious projects to maintain its leading position in the luxury industry.
Full house for Chanel. On Tuesday May 21, the French luxury goods group announced record annual sales for the third year running in 2023, up 14.6% to 18.2 billion euros. This exceptional performance is due in part to an increase in the average selling price.
By way of comparison, last year Hermès sales rose by 21% to 13.4 billion euros. On the other hand, fashion and leather goods sales at LVMH, the world’s largest luxury group, rose by 14% to 42 billion euros.
At Chanel, net profit growth slowed (+3% vs. +14.2% in 2022), but still took it to 4.3 billion euros.
“Chanel again achieved a solid financial performance in 2023, with double-digit growth in all categories (…) After three years of exceptional growth for our industry, the context is more challenging,” said Philippe Blondiaux, Chanel CFO.
Growth in all sectors
Chanel sales in Asia Pacific exceeded 9.2 billion euros, up 17.7%. In Europe, growth was even more pronounced, with an increase of 18.8% to 5.1 billion euros. By contrast, growth in the United States was more modest, rising by just 2.6% to 3.6 billion euros.
Chanel’s Fashion business enjoyed “exceptional growth”, particularly in Ready-to-Wear, under the creative direction of Virginie Viard. Since she took over from Karl Lagerfeld in 2019, the ready-to-wear business has increased 2.5-fold, with 23% growth last year.
The Perfumes & Beauty division was particularly buoyed by “make-up, thanks to the sustained recovery in travel retail”, particularly in airports. Jewelry also continued its positive momentum, contributing to Chanel’s good overall results.
In addition, the company has increased its workforce by 14% in 2023, to more than 36,500 employees.
Expansion plan
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Featured photo : © Chanel
