PARIS (Reuters) – Sales of Chanel in the United States, one of the luxury brand’s three main markets, have slowed with limited single-digit growth in the past six months, the group said on Thursday, warning to turn that strong dynamism observed in the country after the pandemic was coming to an end.
“The trend has undoubtedly slowed since November,” said Chanel chief financial officer Philippe Blondiaux, referring to the group’s sales in the United States, which posted double-digit growth for the whole of 2022.
The increase in sales by Chinese customers, both in mainland China and while traveling abroad, is “more than enough to offset the temporary weakness in the United States”, he added.
Chanel, known for its tweed suits and its “Numéro 5” perfume, generates 50% of its turnover in Asia.
The group does not specify the proportion of its sales made in the United States. Its competitors LVMH and Kering generate 27% of their turnover in the country, Hermès 18%.
Luxury stocks in Europe recently hit a seven-week low as concerns over a slowing US market prompted a sell-off in the sector.
“This second quarter, continued weakness in the US market is shaping up to be the main point of attention,” HSBC analysts said in a research note Thursday.
Philippe Blondiaux assured that Chanel continued to invest after having recently opened a new boutique on Rodeo Drive in Los Angeles and sponsored the Karl Lagerfeld exhibition at the Metropolitan Museum in New York.
Chanel, which is owned by brothers Alain and Gérard Wertheimer, posted sales of $17.2 billion last year, up 17% like-for-like.
(Mimosa Spencer report, Blandine Hénault for the French version, edited by Nicolas Delame)
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