Chanel has released its annual earnings for the first time in 108 years.
French luxury brand Chanel has released its annual results today for the first time and made an announcement regarding a reorganisation of its companies.
According to the figures, Chanel is among the largest luxury brands in the world by sales revenue, outpacing Gucci and almost equal to Louis Vuitton.
The release of Chanel’s annual results should settle any rumours about the company’s future, said Philippe Blondiaux, Chanel’s chief financial officer, in a telephone interview with the New York Times:
“We realized it was time to put the facts on the table as to exactly who we are: a $10 billion dollar company with very strong financials, plus all the means and ammunition at our disposal to remain independent.
“We recognize that we are often a subject of much speculation and that people don’t have facts to hand, leading to the circulation of false or misleading information.
“It was time to let the strength of our balance sheet speak for itself.”
Chanel’s total sales for the 2017 calendar year were $9.62 billion, up 11% from 2016. Growth was mostly driven by sales in the Asia-Pacific region and in Europe.
The luxury brand also announced the establishment of a new London-based holding company, Chanel Limited, which will serve to align its businesses and 20,000 under one roof.
Competition in the luxury market is fierce, with the leading luxury brands all battling for the title of number one luxury brand.
Earlier this month, Gucci announced plans to reach €10 billion in revenue, and Balenciaga became the fastest growing brand in the Kering Group. In May, Burberry released their fiscal year 2017/18 results, and in April, LVMH became the first luxury group to post Q1 results.
Luxury goods have had a renaissance in recent years thanks to the rise of social media and cash-rich millennials. Clearly, there has never been a better time for luxury retailers to consider cross-border eCommerce. Brands considering going global need to research the markets they want to enter, have a point of differentiation, offer a great localized shopper experience and provide preferred payment methods.