Chanel cancels dividend payments as pandemic hits profits

Chanel cancels dividend payments as pandemic hits profits

THE WHAT? Chanel hasn’t paid dividends to its owners for the past year, according to a report published by the Mail on Sunday, and is not proposing to pay a dividend that would usually be due this month.

THE DETAILS In contrast, the company paid out a £1.2 billion dividend in 2019, per the Mail on Sunday, on profits of US$3.2 billion. Curbs on international travel hit fragrance sales in particular in 2020.

THE WHY? Chanel said, per the Mail on Sunday, that although sales had shown ‘good resilience’ during the peak of the pandemic, both sales and profits were considerably down on the prior year at US$10.1 billion and US$1.9 billion, respectively.

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