Chanel plans to invest heavily in new stores and supply chains despite sales drop

From Yahoo Finance: 2025-05-20 12:01:00

French luxury group Chanel plans to invest heavily this year, despite a 4.3% drop in sales. They will open new stores in China and the U.S., maintaining last year’s capital spending level of $1.8 billion. Chanel will also invest $600 million in supply chains and may raise prices to keep up with inflation.

Chanel’s sales for 2021 reached $18.7 billion, with operating profit falling 30%. They plan to add 48 stores this year, mostly in the U.S. and China, with potential price increases in their jewellery range due to higher gold prices. The new creative director will not introduce menswear, amidst industry-wide designer changes.

Luxury groups, including LVMH and Hermes, saw mixed sales performance in 2021. Chanel’s investment plans come amid uncertainty over tariffs impacting the sector’s sales forecast, with expectations of a 2-5% decrease this year. Chanel’s owners are the Wertheimer brothers, as the luxury industry faces ongoing challenges.



Read more at Yahoo Finance: Chanel to keep investing despite choppy luxury market