Chanel is well aware that it is the most desirable luxury brand in the world. Last summer, the brand released its yearly earnings for the first time in the French fashion house’s 108-year history. The big reveal? They're rich; which explains how the late Karl Lagerfeld was able to pull off such grand fashion shows each season.
On Monday, Chanel's global chief financial officer Philippe Blondiaux reiterated to Business of Fashion that business is good. “Chanel is not for sale, Chanel is not preparing for an IPO, I just want to reconfirm that for the hundredth time this year,” he said. “The numbers we’ve shared show that our strategy is exactly the opposite of a company preparing for a sale or an IPO. We’ve increased our level of investments... to prepare for the long term,” he explained. Further, he tells BoF, “We’ve increased our headcount ahead of the curve at the risk of slightly eroding our short-term margins, which we don’t care so much about, to prepare for the long term. That remains our strategy.”
The latest report shows the company generated £8.9 billion in global sales, up 10.5 percent on a comparable basis year over year, with operating profit hitting nearly £2.4 billion, up 8 percent from 2017. The Asia-Pacific market is up 20 percent, to £3.8 billion, passing Europe for the first time ever. BoF reports European sales were nearly £3.4 billion, up 8 percent from 2017.
“If it’s an indication of the brand’s desirability, it really confirms what everybody knows, which is that we are the most desirable brand in the world,” Blondiaux said. “Being independent is part of our DNA and probably a key condition for our success. Unfortunately for many bankers, we will remain a fantasy, but that’s what nice brands are about, creating dreams.”
Well, guess he told us.