Chanel defies fleeting trends raking in £13.9 billion

Luxury fashion and beauty brand, Chanel, has proven to stand the test of time despite ephemeral trends and economic uncertainties, reporting strong financial results ‘across all product lines’ for the year ending 31 December 2022.

Chanel was recently thrust back into the spotlight, thanks to this year’s Met Gala theme (a tribute to its former creative chief, the late Karl Lagerfeld), but the luxury brand proves its favourability prior to the shift in trends.

The company reported revenues of £13.9 billion ($17.2 billion), up 17% versus 2021. Operating profit stood at £4.67 million ($5,776 million), an increase of 5.8% year on year.

Philippe Blondiaux, Global Chief Financial Officer at Chanel, commented: "Chanel has delivered another solid financial performance in 2022, with double-digit growth across all categories. The fact that this has been achieved despite broader macroeconomic challenges is a testament to the creativity and agility of our teams around the world, and the strength and uniqueness of our brand.

"These results were underpinned by demand from our local clientele around the world and show our ongoing investment in client experience, our savoir-faire and our people."

Fashion collections continue to see exceptional growth across all categories, particularly with leather goods and shoes.

As for the Fragrance and Beauty category, it benefitted from the steady return of travel retail and sustained demand from local clientele.

With a newfound sustainability focus, the brand launched N°1 DE CHANEL at the beginning of the year. This line is a new generation of beauty products driven by an eco-responsible approach. The products within the range are created with eco-designed packaging and formulas that contain up to 97% naturally derived ingredients.

ROUGE ALLURE L’EXTRAIT and LES 4 OMBRES TWEED, which was inspired by Gabrielle Chanel’s tweed looks, were also launched during the year.

Leena Nair, Global Chief Executive Officer, added: "The strong performance we are announcing today reflects the strength of our brand, our client relationships, and the freedom of creation that defines everything we do.

"With our expanding international footprint, we are determined to contribute positively to the environment and our communities. Our sustainability ambition is focused on restoring nature and climate, investing in circularity, supporting those in our extended supply chain to thrive and the autonomy of women.

"As we look forward, our priorities are clear, focused on our belief in the transformative role of creation, our desire to have a positive impact in the world and to always stay ahead of the curve. As Gabrielle Chanel said: “être de ce qui va arriver” - “to be part of what happens next”."