Chanel is strategically responding to a recent sales decline by maintaining robust investment plans for 2025. Despite a 4.3% drop in sales and a 30% fall in operating profit in 2024, the luxury brand is moving forward with global expansion and supply chain enhancements.
The company plans to open 48 new stores, with a significant focus on the U.S. and China, to bolster its beauty and jewelry categories. While some luxury brands are consolidating, Chanel is doubling down on investment, allocating $1.8 billion in capital expenditure and $600 million towards its supply chain, including French silk suppliers and Italian jewelers.
CEO Leena Nair acknowledges the challenging macroeconomic conditions but emphasizes Chanel's long-term vision. The brand is also focusing on sustainability, aiming for 100% renewable electricity across its operations. Margot Robbie continues as the ambassador for Chanel No. 5, embodying the brand's luminous and bold femininity.