Chanel, the luxury fashion house based in France, has witnessed its 2020 revenue slump by 18 per cent to US $ 10.1 billion.
The fashion retailer attributed the fall to business disruption owing to store closures and travel restrictions.
The operating profit too slumped by 41.4 per cent – when compared to 2019 – to reach US $ 2.049 million. However, the last quarter of the year witnessed some improvement in sales for the retailer.
To compensate for business disruption, many luxury houses increased prices and invested in digital. Chanel said that it too invested US $ 1.12 billion in capital expenditures in 2020 – an all-time high in Chanel’s history.
The retailer believes Chanel’s continual focus on creativity and innovation, unique savoir-faire and the agility of its teams have enabled it to reduce the impact of the pandemic-induced crisis.
Additionally, Chanel also launched a strategy to handle climate change through CHANEL Mission 1.5° – in commitment to sustainable business.
Founded in 1909, Chanel focuses on women’s high fashion and ready-to-wear clothes, luxury goods and fashion accessories. It generated €10.93 billion in 2019.
