Overview

• Chanel will maintain its capital spending at $1.8 billion for 2025, matching last year’s elevated level, which was a 43% increase from 2023.
• The company is allocating $600 million to internalize production, including acquiring stakes in a French silk supplier and an Italian jewelry maker.
• Plans for 48 new stores this year include nearly half in the U.S. and China, alongside openings in Mexico, India, and Canada, with only six focused on fashion.
• Chanel reported a 4.3% drop in 2024 sales to $18.7 billion and a 30% decline in operating profit, citing macroeconomic and geopolitical pressures.
• While noting tentative stabilization in China and Hong Kong, Chanel executives caution that tariff uncertainties and uneven global demand remain significant challenges.