The iconic Parisian fashion brand, Chanel, has seen an influx of new customers drawn to the reimagined versions of classic items by creative director Matthieu Blazy. The reinvented versions of the brand’s staple bags, shoes, and jackets have sparked a demand that exceeds supply, propelling the brand towards renewed growth.
Revenue Growth and Increased Demand
Chanel, a privately-held company, announced a 2% increase in revenue to $19.3 billion in 2025, marking a bounce back from a 4.3% decline in 2024. This period saw even premium fashion brands grappling with the bounds of demand following significant price hikes during a post-pandemic luxury resurgence.
Blazy, who replaced Virginie Viard last year, has breathed new life into the brand with innovative designs like the relaxed leather “maxi flapbag” retailing at $8500, and bright, fringed renditions of the classic Chanel tweed jacket.
Chanel’s CEO, Leena Nair, noted a creative momentum across all their business activities in 2025 and attributed the sales rebound to the investments made the previous year. The company also reported an increase in operating profit by 5% to reach $4.7 billion, although this fell short of its figures between 2021 and 2023.
When Blazy’s debut collection hit stores in March, it sparked a buying frenzy for new handbags, two-tone pumps in mint green and black sold at $1450, and multicoloured tweed jackets. Simon Longland, Director of Fashion Buying at the prestigious Harrods in London, described the recruitment of new clients – those who had never previously bought Chanel – as phenomenal.
Regional Growth and Future Plans
Despite slower growth than Hermès and a slight decline compared to LVMH’s fashion and leather goods division, Chanel still saw a significant surge in sales in the US market, with a 7.2% increase in the Americas region. However, sales in Asia-Pacific, Chanel’s largest region by sales, declined slightly by 0.8%, while Europe saw a growth of 2.5%.
In 2025, Chanel increased prices by 3% overall and 2% for fashion products, with similar hikes planned for this year. CFO Philippe Blondiaux reported that Chanel’s business in the Middle East, accounting for about 4% of revenue, remained resilient despite the war in Iran.
After opening 41 stores in 2025, the brand intends to open an additional 30 stores this year, including nine fashion boutiques, with new locations in Boca Raton, Florida, as well as Palo Alto and San Diego in California.
Questions & Answers
What contributed to Chanel’s revenue growth in 2025?
Chanel’s increased revenue in 2025 can largely be attributed to the innovative designs of new creative director Matthieu Blazy, which led to a surge in demand for the brand’s products.
How did Chanel fare compared to other luxury brands in 2025?
Though Chanel experienced slower growth than Hermès, it outperformed LVMH’s fashion and leather goods division and saw strong sales growth in the Americas region.
What are Chanel’s plans for 2026?
Chanel plans to continue expanding by opening 30 more stores, including nine fashion boutiques, in locations such as Boca Raton, Florida, Palo Alto, and San Diego, California. The brand also intends to increase prices by a similar rate as in the previous year.
