French luxurious group Chanel mentioned Tuesday that it suffered a 28.2-percent drop in web revenue to $3.4 billion final 12 months due to “challenging” situations in some markets.
“We saw challenging macroeconomic conditions which had an impact on sales in some markets,” the CEO of the style home, Leena Nair, mentioned in a press release. International income dipped 5.3 p.c to $18.7 billion.
It mentioned the headwinds elevate questions over whether or not it’s going to elevate costs, because it usually does twice a 12 months, in March and in September.
A number of rivals, resembling Hermes, have already hiked their costs to compensate for the 10-percent tariffs into the US market ordered by President Donald Trump.
Chanel’s chief monetary officer Philippe Blondiaux instructed Vogue Enterprise that the scenario with the US tariffs was “extremely volatile” and “we are waiting to see what will be the outcome of all the ongoing discussions” earlier than deciding.
Chanel 2024 gross sales in North and South America dipped 4.3 p.c, whereas these within the Asia-Pacific area plummeted 9.3 p.c. Revenues from European gross sales rose 1.2 p.c.
Chanel mentioned it made “record” investments in 2024, notably buying status properties in Paris and New York and increasing its international community of shops, together with in China and Japan. It deliberate to pursue that path, by increasing additional in China in addition to in India and Mexico.
Nair instructed Vogue Enterprise that China was “one of the most dynamic and important markets for the luxury ecosystem” and Chanel had opened 15 new shops there final 12 months, and deliberate to open one other 15.
This story was initially featured on Fortune.com
