Chanel returned to growth in 2025, recording an increase in revenue despite the global slowdown in the luxury market. The French fashion house reported positive results, driven primarily by demand from Europe and the Americas.

Sales up but profit down

The company reported revenue of USD 19.3 billion, up 3% year over year (+1.8% on a comparable basis at constant exchange rates), driven by growth across all business divisions, according to a statement released Tuesday, May 19.

However, during this period, the fashion house founded by Coco Chanel reported a 14.3% decline in net income to USD 2.9 billion, though it did not disclose the reason for the drop. Meanwhile, operating profit increased 5.2% to USD 4.7 billion.

The company delivered "strong financial results" in 2025, supported by growth across all business segments, said Chanel’s Chief Financial Officer Philippe Blondiaux, adding that the performance reflected continued investments in craftsmanship, retail network, and customer experience.

Europe and the Americas

Sales in Asia-Pacific — Chanel’s largest market — remained broadly flat last year, slipping just 0.6% to $9.2 billion. This nevertheless marked a significant improvement from 2024, when sales in the region fell by more than 9% amid a sharp slowdown in Chinese demand, which has long been a key driver of growth in the luxury sector.

“China returned to growth in the fourth quarter of 2025 and that momentum has continued into 2026,” Blondiaux added in an interview with Bloomberg.

Europe delivered strong growth, with sales rising 6.7% to USD 6.1 billion, while the Americas also posted solid performance, with revenue up 6.4% to USD 4 billion.

Chanel does not break down the financial performance of its individual divisions, but said its Fashion segment benefited from strong momentum in ready-to-wear and enthusiastic customer response to the campaign for the new Chanel 25 handbag.

According to the company, fragrance and skincare were the main growth drivers for the Perfumes & Beauty division, supported in particular by the successful launch of Chance Eau Splendide, its first new women’s fragrance in eight years.

Chanel said growth in its Watches & Jewelry division was fueled by the success of the Coco Crush collection, alongside strong performance in the United States. The company also opened new boutiques in Sydney, Bangkok, and Hong Kong, which it described as "a key milestone" in the expansion of Chanel Watches & Jewelry across Australia and Asia.