As global luxury brands recalibrate amidst economic uncertainty, Chanel is refusing to scale back. Instead, the storied French maison is pushing forward with record-breaking investments, a confident expansion across key markets, and a transformative new creative direction under the leadership of artistic director Matthieu Blazy. In 2024, despite a rare dip in revenue and profit, Chanel reaffirmed its commitment to craftsmanship, sustainability, and long-term vision. While competitors navigate turbulence by trimming budgets or shifting strategies, Chanel is doubling down—proving that for a house built on timeless codes and quiet power, the long game remains its greatest asset.
Weathering the downturn
Chanel may be synonymous with timeless elegance, but even the most iconic names aren’t immune to market turbulence. In 2024, the French fashion powerhouse saw its revenues dip 4.3% to $18.7 billion and operating profit drop 30% to $4.48 billion — a sharp contrast to its exceptional growth over the previous three years. Yet in a call with Vogue Business, CEO Leena Nair and CFO Philippe Blondiaux made one thing clear: Chanel is not retreating. It’s investing more than ever.
“Macroeconomic and geopolitical volatility is unquestionably challenging for business,” Nair acknowledged. “As a hundred-year brand, we expect ebbs and flows, and we continue to navigate with our long-term strategy.” That strategy includes a record $1.76 billion in capital expenditure in 2024 — up 43% from the previous year — with no signs of slowing down in 2025.
Blondiaux emphasized the rationale: “We’ll invest a record high amount in the vertical integration of our supply chain this year — close to $600 million — and we’ll continue to invest in the sustainable transformation of our business.” For Chanel, downturns aren’t cause for contraction; they’re moments for deep-rooted commitment.
Global footprint, local challenges
Chanel’s regional performance in 2024 paints a complex picture. While Europe led modest growth at 0.6%, sales in Asia-Pacific fell 7.1%, and the Americas declined 4.2%. The brand’s fashion category faced particular challenges in mainland China, though this was partially offset by stronger demand in Japan and Europe. Fragrance and beauty thrived thanks to skincare and makeup, while watches and fine jewelry saw “dynamic growth.”
Geopolitics also presented unexpected hurdles. The U.S. tariff turbulence — including proposed 20% import taxes from Europe, later scaled back to 10% — has prompted many luxury brands to adjust prices. Chanel, however, is holding its line. “The situation is extremely volatile,” said Blondiaux. “We believe the most responsible posture is to wait for the end of discussions.” Accordingly, Chanel is pausing its usual March and September price increases.
Despite economic pressures, Chanel remains bullish on the U.S. “We believe in the US as a long-term opportunity,” Blondiaux said. “We’ve opened a new flagship on Fifth Avenue, expanded our Dallas boutique, and we are totally confident the US remains a land of opportunity.”
The same optimism extends to China. “It’s one of the most dynamic and important markets for the luxury ecosystem,” said Nair, highlighting Chanel’s expansion into Tier 2 and Tier 3 cities. The brand opened 15 new boutiques in 2024, with 15 more planned for 2025. “We continue to do a lot of investment in celebration in China,” she added.
A new creative era begins
April 2025 marked the arrival of a new artistic director for fashion at Chanel: Matthieu Blazy. Known for his sophisticated work at Bottega Veneta and under Raf Simons, Blazy steps into a role previously held by Virginie Viard, with expectations running high as he prepares his debut collection within months.
“Matthieu is one of the most talented and gifted designers of his generation,” said Nair. “His vision and understanding of Chanel codes convinced us that he was the best suited for the job.” She praised his sensitivity to natural, luxurious materials and his dedication to craftsmanship. “He is spending a lot of time in the ateliers and workshops — we are really excited about what his chapter is going to bring.”
Both Nair and Blondiaux emphasized that Blazy’s journey is not about a single show. “A vision needs time to unfold. Impact is built over time,” said Nair. “We are approaching Matthieu’s transition with patience and perspective — doing this in the unique Chanel way, with intentionality.”
Blondiaux added that the company’s long-term investments over the past decade — including in 70 entities to secure the highest-quality materials — are laying the foundation for Blazy’s success. “He is visiting these partners with open eyes. It’s the best way to prepare him and give him the best raw materials to work with.”
Staying true, yet open to evolution
Speculation about Chanel’s potential entry into menswear has resurfaced, fueled by Blazy’s past experience and the brand’s growing presence among male celebrities — from Kendrick Lamar starring in an eyewear campaign to Timothée Chalamet frequently spotted in Chanel accessories. But Nair remains steadfast.
“It’s going to be the same answer: no, we are not planning to enter men’s,” she said, smiling. “But I’m very happy when I see men all over the world wearing Chanel.” Her remark encapsulates Chanel’s ethos: grounded, intentional, and unshaken by fleeting trends. Whether navigating economic storms, expanding globally, or ushering in new creative leadership, Chanel is playing the long game — and doing so in a manner that remains unmistakably its own.
