THE WHAT? Chanel has returned to sales growth in 2025, driven by strong demand for creative director Matthieu Blazy’s updated interpretations of the brand’s signature fashion pieces.
THE DETAILS The French luxury house reported a 2% increase in revenue to US$19.3 billion in 2025, alongside a 5% rise in operating profit to US$4.7 billion. The rebound follows a sales decline in 2024 and coincides with the arrival of Matthieu Blazy, whose first collection launched in March and introduced refreshed versions of Chanel staples including tweed jackets, handbags and footwear. Retailers including Harrods reported exceptionally strong demand from both existing and first-time Chanel customers, with some products selling faster than supply could keep up. Chanel’s growth outperformed much of the luxury sector, with the Americas delivering 7.2% sales growth, while Asia-Pacific declined slightly and Europe rose 2.5%. The company also continued expanding its retail footprint, opening 41 stores last year and planning 30 additional openings in 2026, including new boutiques in the US. Chanel said investments made in 2024 helped lay the foundation for the recovery, while modest price increases also supported performance.
THE WHY? The results highlight how renewed creativity and product innovation can reignite consumer demand in a slower luxury market and attract new shoppers despite broader economic pressures.
Source: Reuters
