Chanel Revenue Exceeded $10 Billion! Worthy Of Chinese Women'S Favorite Brand

Chanel Chanel, which has disclosed its financial performance for second consecutive years, reiterated its determination to remain independent. Its strong performance continued to be worthy of the first choice of Chinese women in the world's largest consumer group of luxury goods. brand 。

Karl Lagerfeld, the creative director of 36 years, passed away in February. Last year, Chanel Lagerfeld, the first financial company to launch its 109 year report, was once again embroiled in endless rumors of mergers and acquisitions. The market speculated that LVMH Mo t Hennessy Louis Vuitton SE (LVMH.PA) Lu Wei Ming Xuan and other luxury giants may take the opportunity to take the lead. However, Jean-Jacques Guiony, chief financial officer of the world's largest luxury group, pointed out that the scale of Chanel Chanel is a challenge to any buyer.

In the 2018 fiscal year, Chanel Chanel achieved billions of dollars in revenue, and the income of US $11 billion 120 million increased by 11.5% compared with the US $9 billion 620 million in 2017. After excluding the exchange rate effect, it also had a basically flat 10.5% increase in 2017. Operating profit increased by 8% to US $2 billion 990 million per year and net profit increased by 16% to US $2 billion 170 million.

On the scale can be shoulder to shoulder Chanel Chanel is only LVMH SE road under the Louis Vuitton Louis Weedon, and belongs to Kering SA (KER.PA) Kai cloud group's Gucci Gucci. As the world's largest fashion Luxury brands, Louis Vuitton Louis Weedon's fashion leather Department, recorded an income of 18 billion 455 million euros (US $20 billion 658 million) in 2018, an organic growth rate of 15%, and operating profits increased by 21.2% to 5 billion 943 million euros (US $6 billion 653 million). Gucci Gucci's revenue rose 36.9% to 8 billion 285 million euros ($9 billion 274 million) last year, while operating profit of 3 billion 275 million euros (US $3 billion 366 million) also increased by 54.2%. Herm sInternational SCA (HRMS.PA), Hermes international annual income of 5 billion 966 million euros (about 6 billion 678 million U.S. dollars), fixed exchange rate rose by 10.4% year on year, and realized operating profit of 2 billion 45 million euros.

From the data, the profitability of Chanel Chanel is relatively inferior. 26.9% of the business profit margins have lost 32.2% of the LVMH SE Road, the 32.2% of the fashion leather Department, and 34.3% of the Herm SCA sInternational and SCA of Gucci.

Chanel Philippe chief financial officer, Philippe Blondiaux, thinks their profit margins are basically comparable to their counterparts because their product mix is quite different. Perfume and make-up, fashion products, watches and high-end jewelry are the three core categories of the group, while the perfume and color cosmetics of these brands are relatively low. PhilippeBlondiaux points out that brand value is the indicator of group performance. They will sacrifice short-term profits to promote long-term growth in brand value.

In addition to milestone in the sales of billions of dollars, Chanel Chanel's Asia Pacific region has surpassed the European market for the first time. The former sales increased by 19.9% to 4 billion 730 million US dollars with the support of Chinese customers, which increased further in 2017 compared with the 16.5% increase in 2017, while the increase in Europe that recorded 4 billion 280 million dollars in revenue increased by 7.4%. The group said that the tense political and economic relations between major powers have not changed in recent years, and the trend of Chinese consumer spending returning to the local market is also continuing.

Philippe Blondiaux again emphasizes "the core of the private and autonomous group model" with the "most serious and firm" tone, so they neither intend IPO nor do they sell plans. He pointed out that "Chanel must remain independent in order to have the freedom to develop unusual strategies such as stopping the use of rare animal fur and global coordinated pricing", and the current state of affairs helps them maintain rapid investment in store networking, digital projects and mergers and acquisitions.

Philippe Blondiaux revealed that last year's capital expenditure surged by 130%. The group has upgraded its physical stores worldwide, and has also spent $90 million and $44 million 100 thousand buying Spanish leather suppliers ColomerLeather Group and British men. Swimwear Brand Orlebar Brown is also invested in luxury electric business Farfetch Ltd. (NYSE:FTCH), France watch manufacturer F.P. Journe and Swiss watch parts manufacturer Kenissi, and the total cost of merger and acquisition is 234 million US dollars. Last week, the group announced environmental protection in Boston. silk Supplier Evolved by Nature investment.

Philippe Blondiaux points out that companies that are prepared to sell will not spend 1 billion dollars in 12 months to keep creativity and creativity, and not allow a significant increase of 13.5% in the number of employees. "All the work and investment we have done is to maintain the independence of Chanel in the next few hundred years," Philippe Blondiaux said. After another year, it stressed again that Chanel Chanel's financial spanparency is aimed at delivering robust balance sheets, strong sales growth in all regions and categories and their signal as a good operation for Private Companies.

"We are one of the best brands in the market. Unfortunately, the rumors of selling are regularly fried," Philippe Blondiaux said.

Philippe Blondiaux believes that the excellence of Chanel Blondiaux is also reflected in the death of Karl Lagerfeld, which will not cause any financial impact. He said that Virginie Viard, the successor of Karl Lagerfeld, is "the only choice" for the brand. "We have full confidence in her current and future abilities."

Virginie Viard has released the first complete series of solo operation in early May, and Chanel Chanel will hold a grand mourning ceremony for Karl Lagerfeld in The Grand Palace, Paris on Thursday.

In 2018, the three core categories of Chanel Chanel were all growing. The number of fashion categories with double digits accounted for the majority. Capsule series Coco Beach and Coco Neige were especially popular.

Philippe Blondiaux said that the investment budget of Chanel Chanel will be no less than US $1 billion this year or next. The investment focus is still a physical store that can communicate with customers in real terms. The goal is to add and upgrade a total of 30 boutiques every year. By the end of 2018, the group had a total of 25295 employees and most of its new employees came from offline stores.

In the past two years, the group has also started its own online sales of cosmetics and fragrances, and its online revenue grew by 50% in 2018.

The French Wertheimer family, holding Chanel Chanel luxury Empire, received a dividend of $842 million in 2018. AlainWertheimer and its brother G rard Wertheimer, who are global CEO of the group, are 71 and 68 respectively this year. Philippe Blondiaux says AlainWertheimer is still in good condition. Although the group is preparing for a long-term succession plan, it needs no rush.

According to Jefferies Group LLC's research report, Jean-Jacques Guiony, chief financial officer of LVMH SE Road, said at the investor day event that Chanel Chanel's valuation was close to 100 billion euros, rather than some analysts' estimate of 50 billion euros.