Profit down 23 percent at Chanel as luxury slump bites

Profit down 23 percent at Chanel as luxury slump bites

Chanel’s profits have suffered at the hands of the luxury spending slump, according to a report published by Reuters. The luxury goods giant saw operating profit dive 23 percent in the year to December 31, to US$1.6 billion.

Revenue was also down, dropping 16.9 percent to US$6.24 billion, according to a report published by WWD. However, the numbers are thought to exclude sales of perfumes and cosmetics, which are also estimated to have reduced considerably, sinking 21 percent to US$2.91 billion according to Reuters.  

Chanel has refused to comment on the figures, or release a breakdown of regional or divisional progress.

 

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