Chanel approaches 10 billion-euro milestone

A small consolation after the tragic loss of its figurehead Karl Lagerfeld, but Chanel has performed exceptionally well last year. The company's turnover is approaching the milestone of ten billion euros, 12.5 % more than the year before.

 

Firm second place

The French fashion icon managed to boost its turnover up to 9.88 billion euros last year. That makes Chanel the second biggest luxury brand in the world, right between Louis Vuitton and Gucci. Net profits went up an enormous 16 % to 1.9 billion euros in 2018, while gross profit increased by 8 % to 2.6 billion euros. South-East Asia is the brand's biggest market, with a turnover of 4.2 billion euros (+ 19.9 %), followed by Europe (3.8 billion euros, + 7.8 %) and the United States (1.8 billion euros, + 7.4 %).

 

These results are a nice tribute to Karl Lagerfeld, Chanel's artistic director, who died early this year. The fashion icon has only been releasing its figures since last year, but these numbers prove that the famous designer has left behind a financially stable company.

 

Long-term investments

CFO Philippe Blondiaux emphatically denies the rumours that Chanel might be planning an initial public offering. Instead, the top executive stresses that the group is making long-term investments, with just over a billion dollars worth of investments last year – double the amount of the year before.

 

The fashion house is continuing its work on the consolidation of the value chain, digital transformation and both social and ecological commitments, says Blondiaux. It is now up to Virginie Viard to prove herself: she was Lagerfeld's right hand for thirty years and now she has taken on the role of artistic director herself. Her first solo collection was launched in May.