Chanel: +14.6% sales growth in 2023 with nearly $20 Billion in revenue

The luxury market is less buoyant: the United States has not emerged from the inflation crisis, the Chinese market is stagnating, and ongoing conflicts are hindering sales. The context is far from ideal, but Chanel stands out in a sluggish market and posts very positive results, accompanied by a solid development dynamic.

For the third consecutive year, the iconic French house founded by Mademoiselle Gabrielle Chanel publishes record figures: €18.2 billion in sales ($19.7 billion), representing a 14.6% increase compared to the previous year’s results. The net profit, meanwhile, stands at $4.7 billion. Compared to current luxury market data published by Bain & Company, these performances show that the house, owned by the Wertheimer brothers, boasts double the growth of other brands on average (over 15% compared to an 8% increase for other luxury brands).

“Sales have increased across all markets. (…) A feat considering that China is struggling to restart as quickly as expected and the United States experienced a consumption slowdown last year,” explained Philippe Blondiaux, CFO of the Double C house, in a statement.

Chanel does not detail its financial results quarterly, but it is clear that Europe remains the sales locomotive with an annual revenue increase of 18.8% (€5.6 billion). Despite the commercial downturn in China, the Asia-Pacific region still boasts over $10 billion in sales, with a growth rate slightly lower than Europe’s (+17.7%). America lags behind with $3.9 billion in revenue and a growth rate of less than 3%.

“Our sales teams continue to strengthen our ties with local customers while benefiting from the sustainable recovery of tourism,” added Philippe Blondiaux, commenting on the results.

The constant and sustainable recovery of travel retail (cosmetics and beauty product sales in duty-free shops) has been particularly beneficial to the company's beauty and fragrance division. The Haute Joaillerie division has also benefited from a positive trend. According to CEO Leena Nair, Chanel has expanded its distribution network and now has 600 jewelry boutiques worldwide.

Chanel remains one of the few houses in the fashion and luxury sector that remain independent.