Chanel revenue fell 18 percent during 'highly disrupted' pandemic

Chanel on Tuesday said its revenue fell 18 percent to 10.1 billion dollars in 2020. The Paris-based luxury house said its business was “highly disrupted” due to store closures and suspension of international travel.

Prior to global lockdowns, Chanel had a robust duty-free business, which instantly froze as tourism was halted. While the pandemic has proven to be a profitable time for luxury behemoths Louis Vuitton, Hermes and Dior, many others suffered falling sales. Compensating for supply chain disruption luxury owners raised prices, invested in digital and re-focused on local audiences.

Chanel said it invested 1.12 billion dollars in capital expenditures in 2020, an all-time high in its history, to secure a confident future. The Maison invested heavily in its retail distribution to provide the best customer experience to its clients, including its London Bond Street flagship, renovation of its boutique in Beverly Hills and expansion of its Fragrance & Beauty standalone store network.