The Tamesis
Even before Matthieu Blazy’s first collection hit the shelves and sparked Chanel mania in March, the French fashion house was already rebounding.
In 2025, Chanel’s revenue increased by 1.8% to US$19.3 billion at constant exchange rates, and operating profit increased by 5.2% to US$4.7 billion. (In 2024, the company’s revenue will decline 4.3%.)
Leena Nair, global CEO of Chanel, said: “We have laid the foundation for our 2024 results with record investment levels, which you will remember we talked about last year. It is this long-term investment approach that has driven extraordinary creative momentum during the year, which we believe will have a positive impact on the 2025 numbers and contribute to the continued strength of our brand.” Fashion. Following record levels in 2024, capital spending remains high, rising from $1.76 billion to $1.4 billion. In 2025, the company opened 41 boutiques, including 26 fragrance and beauty stores, 7 fashion stores, 8 watch and fine jewelry stores, invested US$700 million in vertical integration of the supply chain, and increased its focus on customer experience.
Blazy’s critically acclaimed series is expected to contribute positively to 2026 figures. “It’s great to see excitement around our brand and Matthieu’s collections, which are being praised for their craftsmanship, creativity and playful interpretation of Chanel’s codes,” said Nair. “As we look to 2026 and beyond, we will continue to invest in our fundamentals, our brands, our customer experience, our sustainability transformation, our expertise and our commitment to making a positive impact in the world. We are confident about the year ahead and the future.”
Chanel’s growth in 2025 puts it right in the middle of a polarized market. In 2025, LVMH sales will decrease by 1%, Kering Group sales will decrease by 10%, Hermès sales will increase by 8.9%, and Prada Group sales will increase by 8%.
By region, Chanel’s growth in 2025 will be led by the Americas (up 7.2%) and Europe (up 2.5%), with the latter driven by France, Italy and Spain. Despite improvements over the year, Asia-Pacific still fell 0.8%, especially in South Korea and Japan. By category, ready-to-wear is performing strongly in the fashion world, with the new Chanel 25 handbag campaign starring Dua Lipa also doing well. Fragrance and beauty products are driven by the former, especially Chance Eau Splendide, as well as skin care. Growth in the watches and fine jewelry divisions was driven by strong momentum in the Coco Crush collection and fine jewelry as the jewelry “super cycle” continued.
Global CFO Philippe Blondiaux highlighted the momentum starting in the second half of the year. “[There’s been a] All categories will return to growth and will show strong momentum in the second half of 2025, with essentially all product lines and geographies showing high single-digit growth rates. ” Fashion. “This momentum continues into the first few months of 2026.”
Regarding the performance of the Blazy collection since entering the store, Nair said: “Matthieu is one of the most talented designers in the world. He brings a new energy, a sense of lightness, a strong focus on fabrics and materials and the brand story, while immersing himself in the history of our brand. He brings everything while respecting the craftsmanship and bringing new ways of working with the craftsmanship. But Matthieu’s collection will only be sold in boutiques from March 2026 “It’s too early to talk about numbers, but the early indicators are very good; customers are excited, employees are excited.”
The Métiers d’Art collection, which launched in New York subways in December and will be available in stores in June, is expected to continue this upward trend. “I’m in the United States, and I must say, while traveling in the United States last week, everyone was really excited about the Métiers d’Art collection,” Nair explained. “This whole series is a love story in New York, and they can’t wait.”
Despite the buzz surrounding Blazy’s collection, explosive growth shouldn’t be expected. Instead, executives plan to pursue steady, incremental growth. “We have always taken a growth approach that suits the long-term strength and appeal of our brands. Looking back to 2025, all three businesses – Fashion, Fragrance and Beauty, Watches and Fine Jewelry – contributed to growth,” said Nair. “We always invest and plan for the long term; that’s our strength.”
