HIGHLIGHTS
*After operating for 108 years in complete secrecy, the fashion house revealed its revenue and profits for the first time - with an impressive line up of $9.62 billion and $1.8 billion respectively
*Chanel’s sales, which increased 11 per cent last year over 2016, are dwarfed by luxury goods maker Louis Vuitton
NEW DELHI: French fashion group Chanel released full year earnings for the first time on Thursday. After operating for 108 years in complete secrecy, the fashion house revealed its revenue and profits for the first time - with an impressive line up of $9.62 billion and $1.8 billion respectively.
The company, which started in 1910 by making hats, followed by sportswear for women, introduced its first perfume, Chanel No. 5, in 1921 - so named because it was the fifth scent to be tested by its founder, Gabrielle Chanel, also known as Coco Chanel after whom the company is named.
The privately-owned company, famed for its tweed suits, cushioned handbags and No5 perfumes, has long intrigued the fashion industry by keeping a close lid on numbers. It also has a maverick streak, being one of the only brands to shun online sales of its clothes.
The move to publish was "absolutely not" a precursor to a stock market listing, Chief Financial Officer Philippe Blondiaux told Reuters. He also ruled out a sale.
"It's exactly the opposite - this financial statement shows that we are amazingly solid financially and we can keep our status as a private, independent company for the next few centuries," Blondiaux said in an interview.
Chanel’s sales, which increased 11 per cent last year over 2016, are dwarfed by luxury goods maker Louis Vuitton Moët Hennessy (LVMH), which recorded sales of $49.5 billion last year - an increase of 13 per cent over 2016.