The number is astounding. Chanel unveiled, Tuesday, May 24, having reached 15.6 billion dollars in turnover in 2021, or 14.5 billion euros. The luxury house took advantage of a 49.6% surge in sales to erase theawesome year of 2020 during which its activity had fallen by 18%, to settle at 8.3 billion euros. The group owned by the brothers Alain and Gérard Wertheimer exceeded the activity of the 2019 financial year, pre-pandemic, by 27%. Thanks in particular to very strong price increases, its profitability exceeded that of 2020 by 170%, at $5.46 billion in operating profit. Its net income crossed the $4 billion mark, up 68% over the last fiscal year compared to 2019.
“Despite the difficult context of 2021, our results highlighted strong demand from our customers”, argues Philippe Blondiaux, financial director of Chanel, by press release. In 2021, the house founded by Gabrielle Chanel had, it is true, continued to invest to support the notoriety of the brand: the envelope devoted to its promotion then reached 1.8 billion dollars, or 32% more than in 2020.
What will it be in 2022? The group’s financial director promises that the year will be “a new year of major investments”. They will exceed a billion dollars. And more than 3,500 people will be hired at Chanel this year. In Paris, the brand has just reopened its jewelry boutique on Place Vendôme, after a year of work. And the catwalks of the collections designed by Virginie Viard once again benefit from extraordinary dramatization. After Dubai, the models of the label flew to Monacoon May 5, to present the 67 silhouettes of the cruise collection.
Portes closes
However, several markets may worry the luxury house which employs 28,500 employees and operates 523 stores worldwide. The brand has cut ties with Russia. Just like its competitors. Since March 4, Chanel’s Russian stores have been closed. In China, the brand cannot exploit its entire commercial network either, given the confinement imposed by the Chinese administration to combat the spread of the coronavirus. The brand specifies Monde that 35 of its Chanel perfume and beauty products boutiques are currently closed. Just like five of its sixteen fashion and jewelry stores. In April, the brand suffered a decline in activity there “double digit”.
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