Speculation over Chanel’s distress may not be confirmed until May 2025, with the publication of the 2024 financial statements. The company is not listed, so it does not have to inform the market every quarter of its performance, but in recent months the sentiment among industry insiders, reported by influential newspapers, claim Chanel to be slowing down. The abrupt termination of the relationship with creative director Virgine Viard also points this way. But president of fashion operations Bruno Pavlovsky throws water on the fire: “We are still growing”.
Chanel in distress
Chanel is considered an ultra-luxury brand and, because of this, quite resilient. In recent years it has implemented an aggressive price-raising strategy for its products (especially for leather goods). Swetha Ramachandran, manager of the Artemis fund, explained to MFF that Chanel probably ran into customer resistance when prices reached levels perceived as disproportionate. Business of Fashion doesn’t avoid the topic either, and makes clear how the sudden split between the French fashion label and its creative director Viard had something to do with the disappointing financial results. The newspaper writes: “Chanel’s creative conundrum comes as market reports indicate that sales are down in almost every market this year”.
Pavlosvky reassures
But will Chanel pay the price for this creative-transition phase? Or will the brand’s prestige shield it from negative repercussions? We will find out only in May 2025. For now, we must believe what Pavlovsky told Fashion Network. “Currently we have entered a phase of greater uncertainty, but we continue to grow“. Who knows how much in terms of value (due to rising prices), and how much in volume, we wonder. “I emphasize our growth because it highlights our ability to adapt to economic conditions. Therefore,” he continues, “regardless of economic circumstances, Chanel’s strength lies in maintaining its leading position”.
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