Unpacking Chanel’s 2024 Performance: Profit Pressures and Strategic Bets

Chanel’s 2024 results reveal a 4% dip in sales and a 30% drop in operating profit, driven by softness in China’s leather goods market and self-inflicted pricing pressures. While handbags underperformed, other categories like beauty and ready-to-wear grew. Chanel is doubling down on direct-to-consumer beauty retail—spending $1.8B on standalone stores—while newly appointed designer Matthieu Blazy is tasked with reigniting desire across accessories. The brand remains highly profitable, but its future hinges on recalibrating product appeal and strategic focus in a more discerning global market.

#LuxuryBusiness, #Chanel, #FashionStrategy, #MatthieuBlazy, #SoftLuxury, #BeautyRetail, #ChinaLuxury, #HandbagMarket, #DTCStrategy, #GlobalLuxuryTrends, #LuxuryInsights, #BrandPositioning