French luxury group Chanel announced plans to continue significant investments in 2025, even as other companies in the sector scale back. Despite a 4.3% decrease in comparable sales to $18.7 billion in 2024 and a 30% drop in operating profit to $4.48 billion, the company remains committed to its long-term strategy. This investment includes adding 48 new stores globally this year, with nearly half planned for the U.S. and China, and maintaining capital expenditures at a record $1.76 billion, consistent with 2024 levels. Chanel also intends to continue raising prices to match inflation.
The company's performance in 2024 showed regional variations, with Europe growing by 0.6%, while the Americas and Asia Pacific saw declines of 4.2% and 7.1% respectively. However, Chanel's CFO Philippe Blondiaux noted "positive signs of stabilisation" in China and Hong Kong, with sales in Mainland China, Hong Kong, and Taiwan turning positive in the fourth quarter of 2024 and continuing into early 2025. CEO Leena Nair emphasized China's long-term potential, citing it as a dynamic market for luxury and highlighting the brand's engagement with new clients in cities like Nanjing and Chengdu.
Chanel's expansion strategy in China is notable given its current market position. The brand has approximately 20 boutiques in China, significantly fewer than competitors who often have 40 to 50. In 2024, Chanel opened 15 new boutiques and plans another 15 in 2025, including a second private salon for top clients in Shanghai. The company also spent $700 million in 2025 on acquiring suppliers to bring more of its supply chain in-house, a move that exemplifies its independence as a private company to manage margins long-term and invest in the brand.
