Chanel announces a 28.2% drop in its net profit

The fall is significant. The luxury group Chanel , faced with "more difficult" market conditions, announced on Tuesday, May 20, that it would suffer a 28.2% drop in its net profit in 2024 to $3.4 billion.

The luxury giant's revenue, meanwhile, fell 5.3% to $18.7 billion. " We faced more challenging macroeconomic conditions in 2024, which impacted sales in some markets," said CEO Leena Nair in a statement.

Chanel is waiting to see how the US tariff dispute unfolds before deciding whether to raise prices on its fashion items, its chief financial officer Philippe Blondiaux told Bloomberg. Several rivals, including Hermès , had announced they would raise prices to offset the 10% US tariff.

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"Last year was a record investment period," Philippe Blondiaux also stated in the press release. The group's investments reached $1.755 billion, an increase of 43% compared to 2023.

The brand has notably acquired several real estate properties including 42 Avenue Montaigne in Paris, as well as a flagship store in New York . “In 2024, we expanded our presence across the world with the opening of new stores in strategic locations, including on the iconic Fifth Avenue in New York, in Nanjing, Chengdu and Tokyo. We will continue in this direction and invest significantly in our global distribution network in 2025 and beyond. This will translate into expansion into markets such as India and Mexico, as well as the opening of new stores in mainland China, Japan and Canada,” adds Philippe Blondiaux.

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Chanel's sales in the Americas fell 4.3% to $3.8 billion. In Asia-Pacific, they fell 9.3% to $9.2 billion. In Europe, however, Chanel's revenue increased 1.2% to $5.68 billion. The company's workforce increased from 36,500 to 38,400 employees by 2024.