Luxury goods (AO) | What does Chanel's comeback mean for the sector?

Research evidence excerpt

Luxury goods (AO) | What does Chanel's comeback mean for the sector?

Connecting the dots

Release date: 20 May 2026

Charles-Louis Scotti

Head of Luxury Goods

+33 1 70 98 85 16

cscotti@keplercheuvreux.comLuxury goods

Europe

What does Chanel's comeback mean for the sector?

Key points:

Chanel returned to growth in 2025 (+2% cFX), with momentum accelerating in H2 and continuing into 2026.

“Blazymania”, more disciplined pricing and a revamped handbag offering are driving renewed client excitement.

Chanel’s rebound shows luxury growth can recover through creative renewal and better price/value positioning.

However, the comeback is set to intensify competition in ultra-premium luxury, notably for Hermès and Dior.

Chanel confirms return to growth as “Blazymania” gains momentum

Chanel (private), the world’s second-largest personal luxury brand after Louis Vuitton, has just published its 2025 earnings,

confirming a return to growth, albeit still moderate. Revenues rose 2% at cFX on a FY basis to USD19.3bn, following a 4% cFX

decline in 2024.

By region, growth last year was primarily driven by the US, while sales declined 1% YOY in Asia. Nevertheless, growth turned

positive in Q4 across Mainland China, Hong Kong and Taiwan, a trend that has reportedly continued into 2026. Management also

reiterated its confidence in the long-term potential of the Chinese market.

Group EBIT also increased 5% to USD4.7bn (vs. USD4.5bn in 2024), although remaining below the levels reached between 2021

and 2023. The brand’s operating margin stood at 24.4%, up 40bps YOY from 24.0% last year, yet still well below Hermès’ c. 41%.

More importantly, management indicated that sales grew at a high single-digit pace in H2 across product categories and regions,