Sources: Chanel Annual Results Press Releases 2021-2024

A Shift from Peak Growth to Strategic Consolidation

Between 2021 and 2023, Chanel delivered an exceptional run of financial expansion, marked by strong double-digit revenue and operating profit growth. However, 2024 introduced a recalibration phase. The brand’s revenue declined by -4,3% to $18,7 billion, marking its first topline contraction since the pandemic, while operating profit fell sharply by -30% to $4,47 billion. This pivot reflects a broader deceleration across the luxury sector in 2024, yet Chanel's response, emphasising long-term brand equity over short-term margins, aligns with its historical commitment to creative integrity and selective investment. While Chanel did raise prices in line with industry norms, what set the brand apart in 2024 was its decision to accept a -30% drop in operating profit in favour of record-long term investments — preserving craftsmanship, creative freedom, and boutique experience, even as peers pursued short-term margin defence.

Intra-Brand Trends (2021-2024)

Chanel’s revenue grew steadily from $15,6 billion in 2021 to a peak of $19,7 billion in 2023. The standout was 2021’s +49,6 % rebound, driven by post-pandemic pent-up demand and localised client engagement. Operating profit followed a similar arc, with an impressive +170,6 % growth in 2021 and continued moderate increases in 2022 and 2023.

However, in 2024 both revenue and profit declined, owing to mounting cost pressures and normalising demand, especially in key regions like Mainland China. Notably, Chanel responded not by cutting back but by increasing capital expenditure by over 43 % and expanding its global retail footprint—signals of confidence in long-term brand resilience.

Inter-Industry Benchmarking

1. Luxury Peers (LVMH, Hermès, Kering):

• LVMH Moët Hennessy - Louis Vuitton’s Fashion & Leather Goods division grew +9 % in 2024, showing resilience but at a slower pace than previous years. Hermès also reported a modest growth of +4,5 % amid global headwinds. In contrast, Kering Group saw sharp declines, especially at Gucci (-20 % revenue drop).

• Chanel’s -4,3 % topline contraction, while below Hermès and LVMH Moët Hennessy - Louis Vuitton, is significantly better than Gucci’s plunge, suggesting stronger brand resilience and a diversified luxury appeal beyond fashion alone.

2. Profitability:

• Chanel’s operating margin in 2024 (~23,9 %) remains high by industry standards, though below the peak ~32,5 % margin it achieved in 2023.

• Hermes typically maintains margins above 35 %, while LVMH’s Fashion & Leather Goods hovers around 40 %. Chanel’s relative drop in profitability was driven by record investments rather than operational inefficiency—strategic rather than reactive.

3. Capital Allocation and Strategy:

• Chanel allocated $1,8 billion in capex in 2024, well above its historic average. This contrasts with Kering and Richemont, which exercised more caution in physical expansion.

• Chanel’s independent structure allows for a more brand-centric strategy, free from quarterly market pressures, enabling bold moves like the acquisition of 42 Avenue Montaigne and significant expansion into India, Mexico, and Canada.

Regional Performance: Asia Weakens While Europe Holds Steady

Chanel’s 2024 revenue performance varied significantly by region, highlighting the uneven macroeconomic recovery and shifting consumer dynamics across the globe. While Europe posted modest gains (+0,6% comparable), underpinned by sustained local demand and tourism recovery, Asia Pacific experienced a sharper contraction, with revenue down -7,1% on a comparable basis due to a weaker consumer environment in Mainland China.

The Americas also declined by -4,2%, reflecting softening discretionary spending and currency headwinds. With Asia still representing nearly half of the brand’s revenue, this decline weighed heavily on the group’s overall top-line result. Nonetheless, Chanel remains committed to growth in the region through boutique expansion in Nanjing, Chengdu, Tokyo, and upcoming entries into India and Mexico

Brand Developments and Creative Momentum

In 2024, Chanel continued to assert its position as one of the most culturally influential luxury brands. From record-setting fashion shows in Asia to bold campaigns led by global stars and a continued expansion of its retail footprint, the House reaffirmed its long-term commitment to creativity, client experience, and cultural capital.

Leadership Changes

• Matthieu Blazy was named Artistic Director of Fashion Activities in February 2025, following the departure of Virginie Viard after nearly five years. The leadership shift was met with high anticipation, marking a new creative era expected to debut later in the year.

Product Innovation & Category Expansion

• SUBLIMAGE La Lotion (Q1 2024): Advanced skincare formulation with increased active concentration, affirming Chanel’s strength in prestige beauty.

• 31 LE ROUGE (ongoing): Continued rollout of the refillable glass-cased lipstick, a blend of sustainability and luxury innovation.

• High Jewellery Sport (Spring 2024): Athletic-themed jewellery pieces honouring Gabrielle Chanel’s sporting lifestyle.

• COUTURE O’CLOCK (June 2024): Haute Horlogerie line inspired by the tools of Chanel’s ateliers—scissors, pins, thimbles.

Brand Ambassadors and Campaigns

• Margot Robbie became the new face of CHANEL N°5 in October 2024. The campaign film “See You at 5”, co-starring Jacob Elordi, reimagined timeless femininity through a modern lens.
  Timothée Chalamet, fronting BLEU DE CHANEL, appeared in a Martin Scorsese-directed campaign in May 2024, adding cinematic gravitas to the fragrance brand.

• Jennie Kim of BLACKPINK continued as a house ambassador, reinforcing Chanel’s hold on the Gen Z demographic via global events and viral appearances.

• Whitney Peak remained the face of COCO MADEMOISELLE, contributing to the fragrance’s youth-focused positioning.

Retail Expansion and Store Openings

In 2024, Chanel undertook one of its most ambitious retail expansion years, reflecting its philosophy of long-term investment in physical client experience.

New Flagship Stores Opened

• New York (Fifth Avenue) - a dedicated Watches & Fine Jewellery boutique in one of the world’s most prestigious retail locations.

• Taipei 101, Taiwan - Chanel’s first Watches & Fine Jewellery flagship in the region.

• Nanjing, Chengdu, Tokyo - strategically selected cities to strengthen presence in Asia.

Chanel Maison de Beauté, Passy, Paris - Opened in mid-2024, offering skincare treatments and fragrance masterclasses in a dedicated Beauty-only environment.

CHANEL & moi - Les Ateliers, Seoul - Added in 2024 as part of the expanding global network for bespoke care, alterations and product longevity services.

Future Expansion Announced:
Chanel confirmed upcoming boutique openings in India, Mexico, Canada, and additional sites in Mainland China and Japan for 2025 and beyond.

Strategic Investments and ESG Priorities

In 2024, Chanel reinforced its long-term vision through bold capital deployment and deepened its commitment to environmental responsibility. Despite a softening in short-term profitability, the House demonstrated confidence in its enduring brand equity and cultural influence by prioritising investments in craftsmanship, retail infrastructure, and sustainability.

Long-Term Investments in Retail and Creative Capital

Chanel’s capital expenditure reached a record $1,755million in 2024—a 4 % increase over the previous year. This significant rise was directed at expanding its physical footprint, elevating the client experience, and reinforcing ownership of strategic brand assets:

• 42 Avenue Montaigne Acquisition (Paris)
  A major real-estate acquisition securing a historic location in the heart of Paris’ luxury quarter, affirming Chanel’s architectural and brand heritage in its founding city.

• Stake in MB&F (Maximilian Büsser & Friends)
  Chanel acquired a strategic minority share in the independent Swiss haute horlogerie brand. This move expands the House’s portfolio in exceptional timepieces and underlines its commitment to horological innovation and artisanal excellence.

• Boutique Network Expansion
  Beyond flagship openings in New York, Tokyo, and Taipei, Chanel confirmed continued rollout into new markets including India, Mexico, and Canada. This underscores the House’s intention to deepen direct-to-client relationships in fast-growing luxury territories.

• CHANEL & moi - Les Ateliers
  The bespoke aftercare and alteration concept expanded with a new location in Seoul, offering extended product lifespan and circular fashion services. These ateliers reflect Chanel’s push for service innovation and long-term product value.

ESG: Chanel’s Net-Zero Commitment in Action

Chanel remained steadfast in delivering against its Science-Based Targets initiative (SBTi)-validated net-zero goal by 2040. In 2024, the brand recorded measurable progress across all scopes of its emissions:

• Scope 1 & 2 Emissions: Reduced by 1 % year-on-year, covering direct operations and energy consumption.

• Scope 3 Emissions: Achieved a 9 % reduction, reflecting improvements in supply chain efficiency and supplier alignment with climate objectives.

• Renewable Energy Transition: Chanel sourced 99 % of its electricity from renewable sources in 2024 and remains on track to reach 100 % by 2025, a goal set under its multi-year climate strategy.

Sustainable Infrastructure and Circular Design

Chanel achieved LEED certification for 78 projects in 2024—including 68 retail boutiques and 10 offices or distribution centres—bringing its global total to 316 certified spaces.

• The CHANEL & moi program further scaled its global offering, enabling personal repair and preservation services for garments and accessories—a concrete demonstration of Chanel’s circularity in action.

• The House also extended partnerships with sustainability pioneers, including the University of Cambridge Institute for Sustainability Leadership (CISL) and the MIT Media Lab, to promote interdisciplinary innovation and environmental literacy across fashion teams

Conclusion and Outlook: A Strategic Pause Before a New Creative Chapter

Chanel’s 2024 results reflected a deliberate shift from peak growth to purposeful reinvestment. In the face of a -4,3 % revenue contraction and a -30 % drop in operating profit, the House resisted cost-cutting and instead increased capital expenditure to a record $1.755 million. This counter-cyclical strategy—unusual in a climate of sector-wide caution—highlights Chanel’s long-term philosophy: to protect brand equity, deepen client intimacy, and preserve creative freedom rather than chase short-term margins.

Regionally, the brand faced pressure in Asia-Pacific, particularly Mainland China, but stabilising results in Europe and continued investment in the Americas suggest a diversified approach to growth. From boutique openings in New York, Tokyo, and Taipei to upcoming launches in India, Mexico, and Canada, Chanel is laying the physical foundations for its next phase of expansion.
Creatively, 2024 was rich with activity—from record-breaking Métiers d’art and Cruise shows in Asia to blockbuster fragrance campaigns led by Timothée Chalamet and Margot Robbie. The launch of CHANEL Maison de Beauté in Paris, the expansion of CHANEL & moi - Les Ateliers, and product innovation in skincare and fine jewellery all contributed to an ecosystem designed to reinforce brand differentiation across touchpoints.

Sustainability remains central to Chanel’s vision. In 2024, the brand reduced Scope 3 emissions by 9%, sourced 99% of its electricity from renewables, and scaled its LEED-certified spaces to 316 globally. With validated net-zero targets through 2040, Chanel is one of few private luxury companies making transparent, measurable climate progress.

Looking to 2025, the appointment of Matthieu Blazy as Artistic Director of Fashion Activities marks a defining inflection point. Known for his architectural rigour and artisanal depth, Blazy’s arrival signals a new creative direction poised to appeal to a more design-literate luxury consumer. His first collection—expected later in the year—will be closely watched by critics and clients alike.

Strategically, Chanel appears well-positioned to thrive in a slower, post-growth luxury environment. Its independence enables bold, brand-driven decisions free from shareholder pressures. Its balance of cultural capital, retail expansion, and climate leadership affirms that Chanel is not only weathering the downturn but actively designing the future of luxury.

Sources: Chanel Limited Financial Results 2021-2024; Bain & Company, Luxury Goods Worldwide Market Study, Spring Update 2024; McKinsey & Business of Fashion, The State of Fashion 2024.

Cover Image: Chance Chanel Fragrance campaign 2024, courtesy Scentfield.

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Read the full Chanel brand report Here.

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For a deeper dive into the financial performance of other top luxury brands, explore the
Burberry 2023/24 Financial Report here
Hermes 2024 Financial Report here
Dior Q1 2024 Financial Report here
Check out other financial analysis article here

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