Chanel has reported a downturn in revenues for its 2024 financial year.
The luxury beauty and fragrance house reported revenues of US$18.7bn, down 4.3% compared with 2023.
Operating profit also slumped by 30% to $4,479m during the year.
The drop in income was attributed to “challenging macroeconomic conditions which had an impact on sales in some markets”, said Leena Nair, Global CEO for Chanel.
“As a 100-year brand, we expect ebbs and flows,” Nair added.
“Our philosophy has always been to act with a long-term view, propelled by the singularity of the Chanel brand.
“Last year, we invested record-high levels in our boutique expansion, client experience, and creative ecosystem and savoir-faire.”
Despite the lowered revenues, Chanel’s Fragrance & Beauty arm saw strong demand, particularly within travel retail.
The year also saw the expansion of the 31 Le Rouge lipstick collections and the launch of Sublimage La Lotion, an all-new formula with a higher concentration of active ingredients.
In Fragrance, campaigns included the film for Blue De Chanel directed by Martin Scorsese and starring Timothée Chalamet, which supported the category.
Margot Robbie also became the new N°5 ambassador, who Chanel said embodied a “luminous and bold femininity”.
“Last year was a period of record investment, where we prioritised real-estate acquisition, enhanced client experience and savoir-faire, and advanced our sustainability ambition,” added Philippe Blondiaux, Global CFO of Chanel.
“While increasing investment by over 40% to $1.8bn, maintaining high levels of brand support activities at more than $2.4bn, and investing continuously in our people had a direct impact on profitability, at Chanel we take a long-term view in everything we do.
“Aligned with this approach, we have maintained a very solid financial structure and balance sheet, key to underpinning Chanel’s strong brand equity for the future.”
Looking towards 2025, Chanel said it will maintain the momentum to invest significantly in its worldwide distribution network.
This includes further expansion into markets such as India and Mexico, as well as new boutiques in Mainland China, Japan and Canada.