Chanel released its annual financial results for the first time ever this week. Chanel has products, such as a handbag that can cost $5,000 or more, but for the first time in its 108-year history everyone knows just how much the luxury fashion house based in France really makes.
Chanel, which is privately held, issued is first ever earnings report that showed sales of close to $10 billion for 2017.
It is not known why the company, which typically it very secretive, released its financials for the first time. When asked to comment, a company spokesperson declined.
Chanel CFO Philippe Blondiaux said through a prepared statement Chanel can remain independent and can focus on its long term.
In a story that was published on Thursday, Blondiaux said that Chanel had decided to lift its veil of secrecy on its finances because the company had realized it was the right time to lay out the facts on the table of who the company really is: $10 billion business with strong financials as well as all the ammunition and means at its disposal to stay independent.
A number of trade publications wrote about rumors of a potential takeover bid by LVMH earlier in 2018. The conglomerate, based in Paris, owns other high end brands such as Louis Vuitton, Celine, Fendi, Marc Jacobs and Givenchy, amongst others. It just recently acquired Christian Dior.
The CEO at LVMH Bernard Arnault dismissed any takeover rumors calling them fake news during April.
The financial report from Chanel suggests that the independent brand has sufficient enough cash to rival any of LVMH’s labels.
The financials showed that Chanel took in $9.6 billion in 2017, which was an increase of 11% from the prior year.
At the same time, Louis Vuitton, one of the perennial best sellers in the world’s luxury fashion industry, took in sales of $9.3 billion during 2017. Other reports have suggested that Louis Vuitton took in over $10 billion.
Chanel announced as well this week it was going through a complete corporate restructuring for just the first time since the late 1950s. Its goal is simplify the brand by bring all major subsidiaries, from fashion to fragrance, under the same roof. Once consolidated, the new company will be called Chanel Limited.
The report noted as well that the company’s success in handbags and clothing highlights the mastery of creativity of the creative director at Chanel Karl Lagerfed.