Chanel Reveals Itself to be Joint-Biggest Luxury House in Financial Results
The first time performance details have been released in 108 years.
Parisian house Chanel has released its annual results for the first time in its 108-year history. The results reveal that Chanel is one of the highest-performing luxury brands in the world, putting it in front of the Kering-owned Gucci and tied with the LVMH-owned Louis Vuitton. Gucci’s sales currently stand at around $7.2 billion USD, with plans to eclipse Louis Vuitton and hit $11 billion USD in the coming years.
The announcement also revealed that Chanel’s sales growth is strong, with sales at $9.62 billion USD, up 11 percent compared to the previous year. As well as revealing its stronger-than-expected financial situation, Chanel also announced plans to restructure the company and simplify an organizational system that had been in place since the 1950s.
Speaking to Business of Fashion, Chanel’s chief financial officer, Philippe Blondiaux, revealed that the company released the figures to warn off any potential takeover attempts. “We realized it was time to put the facts on the table as to exactly who we are: a $10 billion dollar company with very strong financials, plus all the means and ammunition at our disposal to remain independent. We recognize that we are often the subject of much speculation and that people don’t have facts to hand, leading to the circulation of false or misleading information. It was time to let the strength of our balance sheet speak for itself.”
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