French fashion group Chanel released its annual earnings report last week and the figures confirm that it is one of the largest brands in the luxury segment worldwide.
The 108-year old Fashion house reported $9.62 billion in sales last year with a year-on-year increase of 11 percent. Profit rose 18.5 percent from 2016 to $ 1.79 billion. The disclosure positions the company, which belongs to the French businessmen and brothers Alain and Gerard Wertheimer, in close contention with Italian label Gucci (owned by Kering) and Louis Vuitton (which is owned by LVMH).
The brand's decision to release its earnings led to speculations about a possible takeover or IPO. However, Philippe Blondiaux, Chanel's chief financial officer clarified that such is not the case. 'We are not for sale, and absolutely nothing will change that. We realized it was time to put the facts on the table as to exactly who we are: a $10 billion dollar company with very strong financials, plus all the means and ammunition at our disposal to remain independent," Blondiaux said in a statement to the Times,'
Blondiaux said in a statement.
At the moment Chanel benefits from strong demand in the Asia-Pacific region. Its perfume and make-up business has been instrumental in driving up the turnover. In addition to the legendary Chanel No 5, fragrances such as Mademoiselle and Gabrielle complement the fragrance collection. The numbers further prove that Karl Lagerfeld's reinterpretation of the Chanel style is well received by customers.
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