Chanel Beauty Line Sales Surged 100% In May, A Cumulative Increase Of 60% This Year.

A few days ago, the French luxury brand Chanel Chanel announced its 2019 earnings report. Data show that last year's sales grew by 10% over the same period last year, nearly 12 billion 300 million U.S. dollars (about 87 billion 25 million yuan), operating profit grew by about 17% to 3 billion 500 million U.S. dollars (about 24 billion 763 million yuan), perfume and beauty business once again welcomed strong growth.

Meanwhile, Chanel's chief financial officer, Philippe Blondiaux, revealed that Chanel's online revenue rose by 100% in April and May this year, and has increased by 60% since the beginning of this year.

This is the first transcript of Karl Lagerfeld after the death of Chanel Virginie, the new creative director of Virginie.

Compared with the growth rate of 10.5% in 2018, Chanel's performance in 2019 was not affected by the substitution of the creative helmsman. During the period, China's Asian region became the largest market of Chanel for second consecutive years, accounting for 44% of total revenue, 37% for Europe and 19% for America. Up to now, about 85% of the 417 stores in the world have resumed business in Chanel, but some stores in the US, Russia and Latin America are still temporarily closed due to the outbreak.

Chanel chief financial officer Philippe Blondiaux revealed that sales of branded garments rose 28% last year, which fully demonstrates that Virginie Viard's creativity and products after taking over Chanel design team have been recognized by the market and consumers.

"The new crown epidemic will continue to affect the luxury industry in the next 18 to 24 months," he said. Because of the epidemic, Chanel had to close stores and suspend production. " Philippe Blondiaux indicates.

At present, Chanel's clothing, bags and other businesses are still hesitant about online sales, and the brand believes that customers prefer personalized experience. Philippe Blondiaux said that although Chanel had to stop most of its sales, Chanel still insisted on this strategy. Due to the decrease in international travel, Chanel will be particularly difficult in the next 12 to 18 months. About 85% of the stores have been reopened, despite a strong recovery in the newly opened stores.

But the beauty business is an exception.

In July last year, Chanel also landed on Tmall and launched a full range of perfume and beauty products, including the classic Chanel five perfume, soft foundation and velvet lipstick, etc., many of which are the "broken goods kings" that need to be set up all the year round at counters in the July.

For a privately-held company like Chanel, financial information is usually a strictly conservative secret. In the past two years, Chanel has no idea why it will release its earnings.

In this regard, it is speculated that Chanel's move may be an attempt to remove the rumors about the company's decline in performance and acquisition. Chanel's chief financial officer, Philippe Blondiaux, said in a statement that the company is capable of "maintaining independence" and is "focusing on long-term prospects".

At the same time, this year is Chanel's third consecutive years of active disclosure of performance data, triggering the industry's speculation on the brand or IPO.

In response, Philippe Blondiaux responded that Chanel did not have a financing plan. This year's 71 year old shareholder Alain Wertheimer and Global CEO are in good condition, and the ownership and leadership of the brand will not change. Philippe Blondiaux said Chanel would abandon dividend payments in 2020.