Two of the world’s most prominent luxury fashion houses, Chanel and Armani, announced their respective full-year revenues grew by double digits in 2022, with both hailing China momentum to return in the 2023 year.
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For full-year 2022, the Paris-based Chanel reported a 17 percent uptick in sales to USD 17.22 billion, thanks to an increase in sales with Chinese shoppers, in mainland China, and as they resume travelling.
The prestigious brand said revenues in Asia Pacific gained 14.3 percent to USD 8.65 billion on a comparable basis, while revenues skyrocketed 29.6 percent in Europe to USD 4.72 billion and grew 9.5 percent in the Americas to USD 3.86 billion.
In an interview with U.S. media, Philippe Blondiaux, Chanel’s group chief financial officer, said Chanel’s momentum from last year is continuing into 2023, with the Coco Chanel-founded brand currently tracking double-digit gains in mainland China.
In 2022, the brand’s business with Chinese consumers was down 90 percent versus the pre-pandemic year 2019. However, spending by Chinese consumers in France last month, April, was down by only 14 percent, highlighting a return of Chinese tourist to the market.
Coinciding with the earnings update, Chanel said it plans to double capital expenditures this year to USD 1.3 billion, keep investing in communications and events, and add more than 5,000 employees to suit and served its varied clientele worldwide.
“Our philosophy is always to stay focused on building our brand equity in each of the markets we operate in,” said Leena Nair, Chanel’s global chief executive officer, in an interview with U.S. media.
Likewise, Italian luxury firm Armani Group announced a 16.5 percent uptick in 2022 revenues to EUR 2.35 billion (USD 2.52 billion), hailing a decline in Asia revenues, which have already turned around in the first quarter of 2023.
The group said that despite the “global economic environment that is still characterised by multiple crises”, all sales channels registered “significant growth” in 2022, and showed a “very balanced breakdown” with direct retail up 17 percent, wholesale up 16 percent, and e-commerce up 9 percent.
By region, Asia sales declined 6.3 percent last year, dragged down by ongoing Covid restrictions in China that only ended in early 2023. However, the group, which owns Giorgio Armani and Emporio Armani brands, said sales jumped 18 percent in the first quarter of 2023, thanks to a rebound in Asia.
“Europe continues its positive trend (up 22 percent), as does — albeit more modestly — America (up 10 percent), where the coming months are expected to bring a slowdown, hopefully, to be offset by the positive trend in Asia,” the Milan-based group said, referring to the January-March period.