Chanel reported a 4.3% dip in 2023 sales to $18.7 billion, its first revenue drop since 2020, while operating profit plunged 30% to $4.5 billion. CEO Leena Nair attributed the downturn to global market challenges following years of exceptional growth.

Chanel Sales Down 4.3%, Profit Drops 30% in Post-Boom Cooldown

The decline, particularly in leather goods, has prompted Chanel to moderate its aggressive pricing—especially for handbags—and slow expansion in emerging markets. Despite this, the brand remains resilient, with watches and fine jewelry showing strong performance.

CFO Philippe Blondiaux emphasized Chanel’s “very healthy” standing and long-term vision as the brand prepares for a creative shift under new artistic director Matthieu Blazy.