Chanel: 2024 will be a challenge for luxury

Chanel: 2024 will be a challenge for luxury

THE WHAT? Chanel has revealed that sales and profits both delivered growth in the double digits for FY2023, with sales up 16 percent yoy to US$19.7 billion and operating profit rising 11 percent to US$6.4 billion. However, the French luxury brand warned that demand for luxury is on the wane.

THE DETAILS According to a report published by Bloomberg, the Asia-Pacific region led growth for the designer but the Americas region inched up a decidedly more modest 2.4 percent.  The French label recommended a final dividend of US$5.7 billion for 2023.

THE WHY? Chanel said that the cost of living crisis has curbed purchases from ‘aspirational customers’, per Bloomberg. Chanel CFO Philippe Blondiaux told Bloomberg that he’s optimistic that a rising stock market and improving economic landscape will boost demand.