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Chanel reveals annual sales of 10 billion dollars for the first time

By Prachi Singh

22 Jun 2018

Business

Announcing its financial results for the first time in 108 years, luxury house Chanel said that its revenues reached around 10 billion dollars last year. This revelation from the company known for No. 5 perfume, little black dresses and financial secrecy, comes at a time when Kering SA’s Gucci said that it is looking at surpassing a 10 billion euros revenue mark from 6.2 billion last year, posing competition to rival LVMH’s Louis Vuitton. With a 45 percent rise in sales last year, Gucci has already raced ahead of Hermes International.

Commenting on the company’s performance, Philippe Blondiaux, the company’s Global Chief Financial Officer, said in a statement: “Our financial strength gives us the means to remain independent and to focus on the long term. We continue to create and invest to ensure that Chanel remains one of the most iconic and innovative brands in the world.”

Chanel reveals that its is a 10 billion dollars conglomerate

For the year ended December 31, 2017 of Chanel Limited reported Net profit of 1.8 billion dollars on sales of 9,623 million dollars, up 11 percent compared to 2016 on a constant currency basis, driven by growth in all regions. The company added that investment of 1,457 million dollars in brand support activities to deliver creation and innovation strategies was up 15 percent on the previous year.

According to Bloomberg, the two brothers Alain and Gerard Wertheimer, who own the luxury giant received around 23 billion dollars, about 8.7 billion dollars more than previously calculated by the Bloomberg Billionaires Index, which makes them the fourth- and fifth-richest people in France and among the 40 wealthiest globally.

Last year on revenue of 9.6 billion dollars, an increase of 11 percent on a constant-currency basis driven by demand from Asian countries.

Picture:Chanel website

CHANEL