Recently, Chanel reported financial results of 2024. It navigated a year marked by global economic challenges, reporting a 4.3% drop in revenues to $18.7 billion and a 30% decline in operating profit to $4.48 billion. Despite the softer top and bottom lines, the company demonstrated its long-term vision by ramping up investments to record levels, reinforcing its commitment to creativity, client experience, and global expansion.
Capital expenditure surged by 43% to $1.76 billion, and Chanel allocated \$2.45 billion to support brand activities, including high-profile client events and marketing. Free cash flow remained healthy at $1.84 billion, supported by a strong balance sheet and a positive net cash position, underscoring the brand’s financial resilience.
CEO Leena Nair acknowledged the macroeconomic pressure on key markets but emphasized the brand’s enduring philosophy of long-term investment and creative leadership.
CFO Philippe Blondiaux reiterated Chanel’s focus on sustainable growth, pointing to significant real-estate investments and enhancements in client experience and craftsmanship. The brand expanded its global retail footprint, opening boutiques in prestigious locations like New York’s Fifth Avenue, Tokyo, and Chengdu. It plans to continue this momentum with 48 new store openings in 2025, including 22 in the U.S. and China, and further expansion into emerging markets such as India, Mexico, and Canada.
Fragrance & Beauty was a strong performer, led by makeup and skincare innovations such as the expansion of the LE ROUGE lipstick line and the launch of SUBLIMAGE LA LOTION. High-impact fragrance campaigns featured global stars like Margot Robbie and Timothée Chalamet.
Regionally, performance was mixed: Europe posted modest growth of 1.2% to $5.68 billion, while Asia Pacific and the Americas declined by 9.3% and 4.3% respectively.
Chanel has declared a hiring freeze, with plans to maintain its headcount stable at 38,400 this year after hiring 10,000 people in the last three years, including 1,900 in 2024, mostly in the first semester, Blondiaux said.
The privately owned company said earlier this year it was cutting 70 roles in the U.S., representing about 2.5 percent of its workforce there. Blondiaux denied reports that it plans to slash its headcount in China by 20 percent this year, clarifying that it plans “relatively minor” adjustments in regions where growth has stalled.
