Chanel records revenues of 17.22 billion dollars, plans to up investments
French luxury label Chanel reported positive financial results for 2022, giving it the confidence to outline some ambitious investment plans for the year ahead.
The company reported a 17 percent increase in its revenue to 17.22 billion dollars for 2022, while its operating profits also rose 5.8 percent to 5.78 billion dollars.
In light of the increases, Chanel’s global chief executive officer, Leena Nair, told WWD that the company was planning to significantly up its investments in order to build up brand equity in each of its operating markets.
In fact, the firm told the publication that it planned to double capital expenditure this year to 1.3 billion dollars, with a focus on investing in communications and events, as well as adding more than 5,000 employees in the pursuit of the “ultimate luxury experience”.
This is an increase on Chanel’s investments last year, which rose 14.3 percent to 2.05 billion dollars and was driven through global events and advertising.
Growth could also be seen across all regions, with Asia Pacific reporting a gain of 14.3 percent to 8.65 billion dollars, while revenues in Europe rose 29.6 percent and the Americas by 9.5 percent.
Capital expenditures totaled 668 million dollars, representing 3.9 percent of sales, much of which had been integrated into the brand’s global retail network, which ultimately rose to 565 boutiques worldwide by the end of the year.
Chanel additionally reported a net cash position of 2.37 billion dollars, up 322.2 percent from the previous year, while its free cash flow fell 22.2 percent to 3.53 billion dollars. Its profit after taxes came to 4.6 billion dollars, rising 14.2 percent.