Chanel has released its annual earnings results for the first time in the brand’s 108 year history.
According to an article on the New York Times, Chanel has released its annual earnings results for the first time. The brand has been around for 108 years and hasn’t released earnings results since.
Sales reportedly increased by 11% to $9.62 billion compared to last year. Those sales, which include ready to wear, accessories, cosmetics, and fragrances, means the brand “is likely the largest single fashion brand by sales,” according to The New York Times.
Chief Financial Officer Philippe Blondiaux released a statement saying,
“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. We recognize that we are often a subject of much speculation and that people don’t have facts to hand, leading to the circulation of false or misleading information. It was time to let the strength of our balance sheet speak for itself.”
Not only did the brand make more than Gucci, whose sales increased by 48.7% for the first quarter fiscal 2018, the brand made more than Kering, parent company of Gucci, Saint Laurent, Balenciaga, and more, which made 7.6 billion in 2017.
As for if the brand is now the most valuable luxury brand instead of Louis Vuitton is currently not known. LVMH Moët Hennessy Louis Vuitton, parent company of Louis Vuitton, Céline, Dior, and more, doesn’t release earnings reports for each brand. Although, Forbes estimates the brand’s annual revenue is $12.9 billion as of May which is more than the brand’s $9.62 billion in sales.
Blondiaux said the earnings report does not mean the brand will be listed on the stock market. He also talked about whether the brand would sell itself saying, “we are not for sale, and absolutely nothing will change that.” LVMH Bernard Arnault, after having made a bid to buy and bought stocks in Hermès, has been said to be interested in buying the brand.
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