08.02.21
France
www.chanel.com
Sales: $3.4 billion
Corporate sales: $10.1 billion
Key personnel
Alain Werthheimer, global chief executive officer and chairman; Gerard Werthheimer, co-chairman; Alain Philippe Blondiaux, chief financial officer
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
Fragrance: Chanel Factory 5, Blue de Chanel, Les Eau de Chanel; Makeup: Rouge Coco Bloom lipcolor, Perles et Éclats de Chanel makeup collection; Skin care: Sublimage L’Extrait de Nuit, Sublimage L’Essence de Teint, Sublimage L’Essence Fondamentale, Cleansing Collection, Hydra Beauty, Massage Oil Collection
Comments: Luxury purchases were out of fashion during 2020. Sales fell sharply at Chanel, a premier luxury house with business interests in fashion, jewelery and cosmetics and toiletries. Corporate sales fell 18% last year, led by a 36% decline in Europe. Profitability took a nose-dive as well.
But Chief Financial Officer Philippe Blondiaux said the figures reflected the company’s commitment to protecting its staff, supply chain and business partners during a “delicate and painful” year. For example, Chanel refused take advantage of government offers to furlough its staff, and supported some of its financially struggling suppliers.
In a session with analysts, Blondiaux also noted that Chanel’s fragrance and beauty portfolio is much bigger proportionately than any of its peers and that CFT suffered tremendously from the absence of duty-free business. Yet, through all the hardship, the company continued to invest.
While other upscale beauty makers like LVMH, were in defensive mode throughout the year, Chanel increased capital expenditures by 45%, to a record $1.1 billion in 2020 and plans to spend more through 2021. Investments include client-facing tools like concierge shopping services, an app linking existing clients with fashion advisors and store upgrades, including the purchase of its New Bond Street store in London and a new jewelry store in Beverly Hills.
Like most companies in The International Top 30, Chanel is committed to sustainability. The company’s new climate action plan, Chanel Mission 1.5°, was developed with the Science Based Targets initiative and sets science-based targets: the goal is to reduce carbon emissions in its own operations by 50% by 2030, and in its supply chain by 40% per unit sold by 2030. Chanel’s targets are in line with the ambitions of the Paris Agreement, and the company has also committed to shifting to 100% renewable electricity by 2025.
www.chanel.com
Sales: $3.4 billion
Corporate sales: $10.1 billion
Key personnel
Alain Werthheimer, global chief executive officer and chairman; Gerard Werthheimer, co-chairman; Alain Philippe Blondiaux, chief financial officer
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
Fragrance: Chanel Factory 5, Blue de Chanel, Les Eau de Chanel; Makeup: Rouge Coco Bloom lipcolor, Perles et Éclats de Chanel makeup collection; Skin care: Sublimage L’Extrait de Nuit, Sublimage L’Essence de Teint, Sublimage L’Essence Fondamentale, Cleansing Collection, Hydra Beauty, Massage Oil Collection
Comments: Luxury purchases were out of fashion during 2020. Sales fell sharply at Chanel, a premier luxury house with business interests in fashion, jewelery and cosmetics and toiletries. Corporate sales fell 18% last year, led by a 36% decline in Europe. Profitability took a nose-dive as well.
But Chief Financial Officer Philippe Blondiaux said the figures reflected the company’s commitment to protecting its staff, supply chain and business partners during a “delicate and painful” year. For example, Chanel refused take advantage of government offers to furlough its staff, and supported some of its financially struggling suppliers.
In a session with analysts, Blondiaux also noted that Chanel’s fragrance and beauty portfolio is much bigger proportionately than any of its peers and that CFT suffered tremendously from the absence of duty-free business. Yet, through all the hardship, the company continued to invest.
While other upscale beauty makers like LVMH, were in defensive mode throughout the year, Chanel increased capital expenditures by 45%, to a record $1.1 billion in 2020 and plans to spend more through 2021. Investments include client-facing tools like concierge shopping services, an app linking existing clients with fashion advisors and store upgrades, including the purchase of its New Bond Street store in London and a new jewelry store in Beverly Hills.
Like most companies in The International Top 30, Chanel is committed to sustainability. The company’s new climate action plan, Chanel Mission 1.5°, was developed with the Science Based Targets initiative and sets science-based targets: the goal is to reduce carbon emissions in its own operations by 50% by 2030, and in its supply chain by 40% per unit sold by 2030. Chanel’s targets are in line with the ambitions of the Paris Agreement, and the company has also committed to shifting to 100% renewable electricity by 2025.