Chanel in decline? Behind the figures, an ambitious strategy

Profits down, investments up: Chanel defies expectations by betting on the future.

A year under pressure… but not without vision

With sales down -5.3% to $18.7 billion, Chanel has not escaped the turbulence of a slowing luxury goods market. CEO Leena Nair cites unfavorable macroeconomic conditions, particularly in Asia-Pacific, where the brand fell by -9.3%. In the Americas, the decline reached -4.3%, while onlyEurope posted a slight recovery at +1.2%($5.68 billion).

But where others are cutting back, Chanel is investing heavily. In 2024, the company has injected $1.755 billion, up +43% on 2023. A strong signal to the market.

Strategic real estate and conquering new markets

These investments have resulted in the acquisition of prestigious properties in Paris, Tokyo, New York and Chengdu, strengthening the brand’s retail network. Chanel is also strengthening its presence in emerging markets such as Mexico and India, with an increased focus on the online beauty channel.

China remains a key focus, with 15 new stores opening in 2024, and a further 15 planned for 2025. A clear bet on the rapidly changing luxury consumer.

Vertical integration and new art direction

Chanel doesn’t just buy square meters: by 2025, nearly $600 million will be spent on integrating its supply chain, the key to more responsive and autonomous production.

Finally, the arrival of Matthieu Blazy as Artistic Director in 2025 opens a new creative chapter. An alumnus of Bottega Veneta, he succeeds Virginie Viard, herself an heir to the Karl Lagerfeld era. His first collection is expected next autumn for the Spring-Summer 2026 season.

Read also: Richemont progresses (almost) alone in a luxury market under pressure