French fashion company Chanel’s FY20 sales fall 18% to $10.1 bn

French fashion company Chanel’s FY20 sales fall 18% to $10.1 bn

Chanel, a French luxury fashion house, posted 17.6 per cent revenue decrease to $10.1 billion in fiscal 2020 ended on December 31, 2020, compared to $12.2 billion in the previous fiscal. However, the company’s profit after tax for FY20 slipped to $1.3 billion (FY19: $2.4 billion), while operating profit was down to $2.0 billion ($3.4 billion).

“The strength of the Chanel brand was clearly demonstrated in 2020 as the business delivered a resilient financial performance in what was a very challenging period for our employees, our partners and for the business itself,” Philippe Blondiaux, global chief financial officer at Chanel, said in a press release.

“Chanel’s focus on creativity and innovation, unique savoir-faire and the agility of our teams and our organisation, helped to limit the impact of the crisis. At the same time, Chanel has continued to prioritise investment to support the long-term health of the brand, with record levels of capital expenditure through the year,” Blondiaux added.

During FY20, revenue from Europe plunged 36.4 per cent to $2.9 billion ($4.5 billion), whereas revenue from Asia-Pacific dipped 3.1 per cent to $5.2 billion ($5.4 billion). Moreover, revenue from Americas declined 15.0 per cent to $2.0 billion ($2.3 billion).

“In keeping with our long-term approach and commitment to sustainable business, we also launched our strategy to tackle climate change through Chanel Mission 1.5°. The business has made early progress against the science-based targets we have set, as we look to accelerate the move to a lower carbon economy and help protect the world’s most vulnerable communities and ecosystems from the impacts of climate change,” Blondiaux said in the release.

Source- fibre2fashion

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