Chanel experienced a rebound in 2025, with revenue increasing by 2% in currency-adjusted terms to $19.3 billion, and operating profit growing 5% to $4.7 billion. This growth, which followed a 4.3% decline in revenue in 2024, is largely attributed to creative director Matthieu Blazy, who took over last year. Blazy's reinvented classic designs, such as the $8,500 slouchy leather "maxi flapbag" and bright, frayed tweed jackets, have attracted new customers to the brand, with one director from Harrods calling the recruitment of new clients "phenomenal." The Americas region, specifically the U.S., was a primary driver of this growth, with sales up 7.2%. Chanel's success comes despite a challenging economic environment, demonstrating that luxury remains an offer-driven market where new creativity can drive interest and sales.
Chanel's robust performance, termed "Blazymania," is seen by some analysts, like those at Morgan Stanley, as potentially coming "at the expense of peers" given slow industry growth. This poses a threat to the turnaround efforts of competitors such as Dior, Louis Vuitton, and Gucci. However, others view Chanel's buzz as a positive indicator for the broader luxury market, suggesting that a strong creative offering can still ignite demand even when inflation means fewer shoppers can afford luxuries. The company raised prices by 3% overall and 2% for fashion products in 2025, with similar increases planned for the current year, and is planning to open 30 new stores in 2026, including nine fashion boutiques in key U.S. locations like Boca Raton, Palo Alto, and San Diego.
While Chanel's 2025 growth rate was slower than Hermes (which grew sales 9.8% to 16 billion euros), it outperformed LVMH's fashion and leather goods division (which saw a 5% decline to 37.77 billion euros). The company is committed to maintaining elevated investment levels while limiting price increases, as stated by CEO Leena Nair and CFO Philippe Blondiaux. Blazy's influence extends beyond new designs, as evidenced by a 47% growth in search rates for Chanel on resale platforms like ReSee, and increased interest in specific styling cues and vintage pieces that echo his aesthetic. Despite the pressure of overseeing 10 collections a year, Blazy's work is seen as injecting joy and relevance into the brand, attracting global attention and a "good indicator for luxury."
