PARIS — Chanel is enjoying high-single-digit growth year to date after returning to growth last year as it reorganized its teams and bolstered its manufacturing capacity under new creative director Matthieu Blazy.
The French fashion house said full-year revenues rose 3 percent at reported exchange rates to $19.3 billion, representing an increase of 1.8 percent in comparable terms. This marked a turnaround from the previous year, when revenues were down 4.3 percent at comparable rates amid a sharp slowdown in spending in mainland China.
But while operating profit rose 5.2 percent to $4.7 billion, net income fell 14.3 percent to $2.9 billion in 2025.
Blazy presented a critically acclaimed first collection in October, but the annual results did not reflect the “Chanelmania” that greeted the arrival of the products in stores in March 2026. Last year’s sales advance was fueled by a strong performance in the Americas and moderate growth in Europe, amid continued softness in the Asia-Pacific region.
In an interview with WWD, global chief executive officer Leena Nair and chief financial officer Philippe Blondiaux said they saw growing momentum across all business activities and product lines starting in the second half of 2025 and continuing into 2026, which has translated into revenue growth in the high-single digits.
“We are on track and confident for the year ahead and beyond,” Nair said.
Describing Blazy as “one of the most talented designers in the world,” she credited him with breathing new energy into the brand. “It’s been such a joy to see this excitement. The early indicators are great,” she added, though she cautioned that Chanel is maintaining the long view.
“We are a 110-year-old brand. We try not to be too distracted by the hype or frenzy and stay focused on the long-term strength and desirability of our brand,” Nair said.
“We’re seeing client traffic up, we see client excitement up, we see staff excitement up, we see engagement into the collections a lot more, but we’re always focused on the level of craftsmanship, the quality of execution, the quality of our products, and to take the time it takes to design and produce pieces without compromise, and this naturally sets the rhythm for us,” she explained.
Dua Lipa in the campaign for the Chanel 25 handbag.
David Sims/Courtesy of Chanel
In a recent interview with WWD, Bruno Pavlovsky, president of fashion and president of Chanel SAS, said the company was wary of overproduction, instead targeting reported growth of between 5 percent and 7 percent a year, with price and volume contributing evenly to the mix.
In line with other leading luxury players, Chanel curbed its spending last year, reducing capital expenditure by 17 percent to $1.45 billion. However, stripping out the effect of real estate acquisitions, capex was up 6 percent, Blondiaux noted.
Chanel plugged $700 million into its manufacturing network, bringing the total number of suppliers it controls close to 75 as it continued to secure access to high-quality materials and vertically integrate its supply chain, he said.
In 2025, it acquired majority control of leather goods manufacturer Renato Corti and bought a minority stake in Como-based silk specialist Mantero Seta SpA, as well as a participation in Scottish cashmere spinner Todd & Duncan, Blondiaux said.
Other key investments included a new fragrance manufacturing facility in France and Nevold, an independent business-to-business hub dedicated to circular material development. The company is also building new global headquarters in London, set to be inaugurated by the end of this year.
Chanel continued to grow its store network with the net addition of 41 locations, including 26 dedicated fragrance and beauty boutiques, seven fashion stores and eight watch and jewelry units.
Inside Chanel’s newly renovated Plaza 66 store in Shanghai.
Courtesy
Major openings included the renovation of its landmark store at Shanghai’s Plaza 66 mall, which almost doubled in size, and other boutiques in Hong Kong, Las Vegas, Toronto and Fukuoka, Japan.
“We are committed to creating the ultimate experience for our clients, from the most loyal to those discovering Chanel for the first time. We know that boutiques are really, really important as a touchpoint: 50 percent of the reason a client engages with Chanel, discovers Chanel, becomes part of the Chanel family is because of the relationship with the fashion adviser and boutique adviser,” Nair said.
The house plans to open 30 boutiques in 2026, of which nine will be in fashion, 16 in fragrance and beauty and five in watches and jewelry.
Chanel is also selectively expanding e-commerce in the beauty segment. In tandem with the rollout of Chance Eau Splendide, its first new women’s fragrance in eight years, it rolled out a new fragrance and beauty app, and launched online retail in Mexico and Argentina.
