Home Business News Chanel lifts the veil on its profits for the first time

Chanel lifts the veil on its profits for the first time


Luxury fashion house Chanel has revealed its profit figures for the first time. The private French business, famous for its perfumes, jackets and handbags, says it made $1.79bn (£1.35bn) last year, up 18% on the year before, on sales up 11% at almost $10bn.Chanel said its motive for unveiling the figures was to show its strength. They confirm the label, one of the world’s best-established and best-known, is among the world’s biggest.Its biggest rivals, such as Louis Vuitton owner LVMH and Hermes, are all listed on the stock market and therefore have to publish their figures regularly. Chanel said its move in making its figures public did not mean it planned to join them.Its chief financial officer, Philippe Blondiaux, told the Reuters news agency: “It’s exactly the opposite – this financial statement shows that we are amazingly solid financially and we can keep our status as a private, independent company for the next few centuries.””Instead of having others report, we’ve decided to put the facts on the table about who we are.” ConsolidationChanel was founded in 1910 by Coco Chanel, famous for her simplicity of dress. Chanel remains synonymous with the Little Black Dress.

In an unusual move, Chanel also said it had undergone an internal reorganisation that consolidated almost of all its activities under a UK registered holding company.The company’s creative director is Karl Lagerfeld (pictured). It is owned by billionaire brothers Alain and Gérard Wertheimer.The brothers resigned as directors earlier this year. The UK’s Martha Lane Fox, founder of Lastminute.com, was recently appointed to the board.
Source: BBC News


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