Chanel's falling profits illustrate a slowing luxury sector

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The luxury giant saw its profits decline significantly in 2024, like its competitor LVMH, particularly due to the stalling US and Chinese markets. Only Hermès managed to reverse the trend, even breaking profit records.

Chanel store in New York, Wednesday, May 21, 2025. (Charly Triballeau/AFP)

Chanel is also bearing the brunt of the current downturn in the luxury market. The world's third-largest company in the sector by revenue announced on Tuesday, May 20 , a 28.2% drop in its net profit in 2024, falling to €3.1 billion, compared to approximately €4.1 billion the previous year. Its revenue also fell by 4.3% (at constant exchange rates) to €17.2 billion due to "more challenging macroeconomic conditions in 2024, which impacted sales in certain markets," CEO Leena Nair explained in the earnings announcement press release.

The same trend is seen at Kering and LVMH. The latter, the world's number one, saw its net profit fall by 17% last year to 12.6 billion.