After a stellar 2019, which saw sales jump 13%, Chanel
executives warned analysts that 2020 results will be heavily impacted by COVID-19, and that the pandemic's impact may be felt for years.
Last year, sales totaled $12.2 billion, led by gains in all regions and categories despite challenging economic conditions, demonstrations in Hong Kong and strikes in France. Sales in Asia Pacific rose 14.7% to $5.4 billion and European sales rose 5.9% to $4.5 billion, but the company noted the rate of gain slowed from the previous year. In contrast, sales growth accelerated in the Americas, rising 9.7% to $2.3 billion.
The results will be far different in 2020, however; as company executives warned sales could drop in the double digits. Furthermore, with air travel in flux, Chanel does not expect duty-free business to rebound until the second half of 2021.