Chanel sold $12.3 billion last year, outperforming Gucci

According to foreign media reports, on June 18, French local time, luxury brand Chanel released its 2019 financial report. During the reporting period, Chanel achieved sales of 12.3 billion US dollars, an increase of 13% year-on-year; operating profit reached 3.5 billion US dollars, an increase of 16.6% year-on-year; operating profit rate rose from 27% to 28.5%. This is the first transcript of Chanel since the death of Karl Lagerfeld, the former artistic director of the brand, and the appointment of new artistic director Virginie Viard. Compared with the 10.5% growth rate of revenue in 2018, Chanel's performance in 2019 has not been affected by personnel changes.

Chanel is one of the global luxury brands that keeps pace with LV, Gucci and others, and is famous for tweed suits, quilted handbags and perfume No. 5. Chanel is an unlisted company that has no obligation to disclose performance, but has released its annual results since 2018. According to estimates by Bernstein Research, Chanel's performance in 2019 makes it the second-ranked luxury brand in the luxury market. The first place is LVMH Group's LV, with 2019 sales of $12.9 billion. The third place is Gucci under the Kering Group, with 2019 sales of 10.7 billion US dollars.

Chanel did not disclose the sales of its single products, but pointed out that its clothing is the best performing product line last year, and the revenue of clothing has achieved a 28% growth last year. In terms of regions, Chanel’s sales in the Asia-Pacific market increased by 14.7% last year to US$5.43 billion; the growth rate in the European market slowed down, and revenue increased by 5.9% year-on-year to US$4.53 billion; sales in the American market increased by 9.7 year-on-year % To 2.31 billion US dollars.

The outbreak of the new coronary pneumonia epidemic in 2020 also impacted Chanel's performance. Chanel Chief Financial Officer Philippe Blondiaux said that due to the epidemic, the company's revenue and profits will fall sharply in 2020, and it will be very difficult for the luxury industry in the next 18-24 months.

Like other luxury brands, affected by the epidemic, Chanel temporarily closed its stores after the outbreak. Philippe Blondiaux said that up to now about 85% of Chanel's stores have reopened, and sales in the Chinese market have rebounded by more than 100% in a few weeks, but it is still not enough to make up for Chanel's loss in international business. The immigration restrictions imposed by many countries have caused Chanel's tax-free business to lose a large number of international tourists and consumers.