Due to a turbulent economic climate and changing consumer behaviour, French fashion house Chanel is now also seeing a sharp drop in sales and profits. The luxury brand continues to invest in expanding its store network.
General malaise
Chanel saw sales fall 4.5% last year to $18.7 billion (16.5 billion euros) and profits as much as 28.2% to $4.5 billion. It was the first time since 2020 that the brand had to announce a sales decline – then due to store closures during the pandemic – and it is a remarkable setback for a company known as one of the most stable players in the luxury industry. The downturn is due to economic headwinds and changing consumer buying habits, the group says.
