French maison Chanel reported a 16 percent increase in sales to USD 19.7 billion last year, with double-digit growth across all categories.
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In 2023, Chanel said sales increased in all markets as tourists returned to many locations worldwide, while demand from local customers remained sustained.
The Asia-Pacific region, which represents more than half of total revenue, led the growth, where it clocked double-digit percentage growth, as well as in Europe, offsetting a sharp slowdown in the United States for the 12 months.
Meanwhile, revenues rose 14 percent in the fourth quarter, according to an update by the Parisian firm.
Looking ahead, Chanel said it is taking a long-term view and plans to spend more than ever before on stores and production facilities in 2024. The company said it will increase its capital spending this year to USD 1.8 billion from USD 1.2 billion in 2023,
As part of that spend, Chanel plans to invest in opening more stores in mainland China, despite a shift in spending by Chinese shoppers to other markets as they resume travelling.
“China is still a place where we are, I would say, under distributed,” said Chanel chief financial officer Philippe Blondiaux, where the company has 18 fashion boutiques.
The Greater China remains a market for growth for Chanel. It was reported last year that Chanel secured one of the largest leases in Hong Kong since Covid-19’s onset, inking a deal for an expansive 18,000-square-foot, two-storey shop in Causeway Bay’s Capitol Centre for a monthly lease of USD 383,000.
Earlier this month, the firm revealed it will reprise its cruise 2025 collection in Hong Kong, slated for November 5.
Chanel’s annual performance align with Hermès and LVMH as major luxury groups that have shown the most resilience as demand for high-end goods weighs. Rivals Kering and Burberry have not fared as well in 2023.