Chanel sees strong recovery in 2021 and sticks to limited online sales strategy

A woman walks past a wall with the logos of French luxury goods maker Chanel in Nice, France, February 22, 2017. REUTERS/Eric Gaillard/File Photo

PARIS/MILAN, June 15 (Reuters) – Sales at French luxury group Chanel are expected to grow by double digits this year from their pre-pandemic levels in 2019, the group’s chief financial officer said on Tuesday after the crisis of the coronavirus affected its revenues in 2020.

Sales for the fashion brand, known for its tweed suits, quilted handbags and No. 5 perfume, totaled $10.1 billion last year, down 18% at constant exchange rates more pronounced than that seen in some rivals. LVMH’s (LVMH.PA) revenues fell 16% in 2020, while those of Hermès (HRMS.PA) fell only 6%.

“As we speak, we’ve seen double-digit growth from 2019 so far this year and we see no reason for that trend to change,” Chanel chief financial officer Philippe Blondiaux told Reuters. , adding that China and the United States in particular were driving the rebound.

“We’re beyond what some have called revenge buying, we think that’s a deep and enduring dynamic, which may not be true for all luxury players but it’s true for the big brands that have continued to invest like us.”

Chanel spent $1.36 billion in 2020 to support its brands, he said.

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Reporting by Silvia Aloisi. Editing by Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

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David A. Albanese