08.01.23
United Kingdom
www.chanel.com
Sales: $7.0 billion
Key Personnel: Alain Wertheimer, global executive chairman and co-owner; Gérard Wertheimer, co-owner; Leena Nair, global chief executive officer; Philippe Blondiaux, global chief financial officer; Stephane Blanchard, president US
Major Products: Fragrances—Chanel No. 5, Allure, Allure Homme, Coco, Coco Mademoiselle, Chance, No.19, Cristalle, Pour Monsieur, Antaeus, Egoïste, Les Exclusifs, Bleu de Chanel. Skin care—Sublimage, Ultra Correction Lift and Line Repair, Hydramax + Active, White Essentiel, Le Blanc, Hydra-Beauty. Color cosmetics—Rouge Allure, Rouge Coco, Le Vernis, Inimitable, Inimitable Intense, Les 4
Ombres, Vitalumière, Joues Contrastes
New Products: No. 1 de Chanel fragrance, Les 4 Ombres Tweed makeup
Comments: Corporate sales soared 17% last year to a record $17.2 billion. Operating profit rose 5.8% to nearly $5.8 billion. Clearly, consumers remained brand loyal to the world’s No. 2 luxury goods maker (behind LVMH), despite price increases. In fact, half of Chanel’s revenue growth was due to price increases.
The company posted double-digit gains across all product lines. By region, sales in Asia Pacific rose 14.3% to $8.65 billion. Revenues climbed 29.6% in Europe to $4.72 billion and 9.5% in the Americas to $3.86 billion.
Chanel is expanding its London-based global headquarters. The company expects to complete the move to 38 Berkeley Square by the end of 2025. Chanel moved its global headquarters to London from New York City in 2018.
Chanel plans to hire about 5,000 more employees worldwide this year.
In May, CFO Philippe Blondiaux told The Financial Times that Chanel’s growth had slowed in the US in the past six months. As a result, US revenues are growing in “the single digits,” he told FT. In contrast, demand in China is picking up with the end of covid lockdowns. Sales to Chinese consumers in France were down 90% from 2019 levels, according to Chanel.
Stephane Blanchard was appointed president of the US region and Chanel Inc., effective September 1. He replaces John Galantic who stepped down as chief operating officer of Chanel Inc. Prior to this appointment, Blanchard was managing director of Chanel Korea, where he has served since 2016. There, Blanchard implemented transformative strategies for talent development, culture, client engagement, retail agility and sustainability, resulting in significant business growth, according to Chanel. He has also been instrumental in driving digital and data transformation across the Asia-Pacific region.
Innovation also drives success at Chanel. In July, Chanel Parfums Beauté was awarded US Patent No. 11,696,887 B2 for a cosmetic composition comprising Pichia naganishii hydrolysate. The patent covers a cosmetic composition comprising a hydrolysate of a yeast of the species Pichia naganishii obtained from an exudate of Camellia japonica. The composition is designed for promoting moisturization. Earlier in the year, another Chanel patent (US 11,590,070 B2) detailed a Camellia extract obtained by extracting through ultrasound a powder of Camellia japonica flowers. The extract has soothing and anti-inflammatory cosmetic properties.
At press time, Chanel announced a brick-and-mortar space for fragrance and other goods in the Williamsburg section of Brooklyn, NY.
www.chanel.com
Sales: $7.0 billion
Key Personnel: Alain Wertheimer, global executive chairman and co-owner; Gérard Wertheimer, co-owner; Leena Nair, global chief executive officer; Philippe Blondiaux, global chief financial officer; Stephane Blanchard, president US
Major Products: Fragrances—Chanel No. 5, Allure, Allure Homme, Coco, Coco Mademoiselle, Chance, No.19, Cristalle, Pour Monsieur, Antaeus, Egoïste, Les Exclusifs, Bleu de Chanel. Skin care—Sublimage, Ultra Correction Lift and Line Repair, Hydramax + Active, White Essentiel, Le Blanc, Hydra-Beauty. Color cosmetics—Rouge Allure, Rouge Coco, Le Vernis, Inimitable, Inimitable Intense, Les 4
Ombres, Vitalumière, Joues Contrastes
New Products: No. 1 de Chanel fragrance, Les 4 Ombres Tweed makeup
Comments: Corporate sales soared 17% last year to a record $17.2 billion. Operating profit rose 5.8% to nearly $5.8 billion. Clearly, consumers remained brand loyal to the world’s No. 2 luxury goods maker (behind LVMH), despite price increases. In fact, half of Chanel’s revenue growth was due to price increases.
The company posted double-digit gains across all product lines. By region, sales in Asia Pacific rose 14.3% to $8.65 billion. Revenues climbed 29.6% in Europe to $4.72 billion and 9.5% in the Americas to $3.86 billion.
Chanel is expanding its London-based global headquarters. The company expects to complete the move to 38 Berkeley Square by the end of 2025. Chanel moved its global headquarters to London from New York City in 2018.
Chanel plans to hire about 5,000 more employees worldwide this year.
In May, CFO Philippe Blondiaux told The Financial Times that Chanel’s growth had slowed in the US in the past six months. As a result, US revenues are growing in “the single digits,” he told FT. In contrast, demand in China is picking up with the end of covid lockdowns. Sales to Chinese consumers in France were down 90% from 2019 levels, according to Chanel.
Stephane Blanchard was appointed president of the US region and Chanel Inc., effective September 1. He replaces John Galantic who stepped down as chief operating officer of Chanel Inc. Prior to this appointment, Blanchard was managing director of Chanel Korea, where he has served since 2016. There, Blanchard implemented transformative strategies for talent development, culture, client engagement, retail agility and sustainability, resulting in significant business growth, according to Chanel. He has also been instrumental in driving digital and data transformation across the Asia-Pacific region.
Innovation also drives success at Chanel. In July, Chanel Parfums Beauté was awarded US Patent No. 11,696,887 B2 for a cosmetic composition comprising Pichia naganishii hydrolysate. The patent covers a cosmetic composition comprising a hydrolysate of a yeast of the species Pichia naganishii obtained from an exudate of Camellia japonica. The composition is designed for promoting moisturization. Earlier in the year, another Chanel patent (US 11,590,070 B2) detailed a Camellia extract obtained by extracting through ultrasound a powder of Camellia japonica flowers. The extract has soothing and anti-inflammatory cosmetic properties.
At press time, Chanel announced a brick-and-mortar space for fragrance and other goods in the Williamsburg section of Brooklyn, NY.