Chanel announces a 28.2 % drop in net profit – Liberation
The fall is substantial. The luxury group Chanelfaced with market conditions « More difficult »announced this Tuesday, May 20, suffered a 28.2 % drop in net profit in 2024 to 3.4 billion dollars.
The turnover of the luxury giant is decreasing from 5.3 % to 18.7 billion dollars. « »We were faced with more difficult macroeconomic conditions in 2024, which had an impact on sales in certain markets ”said Leena Nair, Managing Director cited in a press release.
Chanel is waiting to know the evolution of conflict on customs duties launched by the United States Before deciding whether or not to increase the prices of his fashion items, said Philippe Blondiaux, his financial director, to the Bloomberg agency. Several competitors, including Hermèshad announced that they were going to increase their prices to compensate for the 10 % of American customs duties.
« The past year was a record period period »also said Philippe Blondiaux in the press release. Group’s investments reach $ 1.755 billion, an increase of 43 % compared to 2023.
La Griffe has notably acquired several real estate, including 42 avenue Montaigne, in Paris, as well as a « flagship » in new York. “In 2024, we extended our presence around the world with the opening of new shops to strategic locations, especially on the emblematic fifth avenue in New York, in Nanjing, Chengdu and Tokyo. We will continue in this direction and will invest significantly in our global distribution network in 2025 and beyond. This will result in expansion on markets such as India and Mexico, as well as the opening of new shops in continental China, Japan and Canada ”, Adds Philippe Blondiaux.
Chanel sales are down 4.3 % in « Americas » at 3.8 billion dollars. They drop in Pacific Asia from 9.3 % to $ 9.2 billion. In Europe, conversely, Chanel’s turnover increased by 1.2 % to $ 5.68 billion. The company’s workforce increased from 36,500 to 38,400 employees in 2024.
