French luxury group Chanel is expecting sales to increase by double digits in 2021 compared to 2019 thanks to growing demand in the U.S. and China, the company’s chief financial officer said today.
The increase in sales are a welcome relief for the French luxury group as the company’s sales in 2020 were down by 18 percent at constant exchange rates, which was higher than what other rivals in the luxury fashion industry observed. LVMH’s revenue, for example, was down by 20 percent last year, while Hermés’ revenues was only down by 6 percent.
“As we speak, we are growing double-digit versus 2019 so far this year and we see no reason for this trend to change,” Chanel’s CFO Philippe Blondiaux told Reuters.
In 2019, the company reported $12.3 billion in sales.
Chanel‘s growth in sales comes as the company continued to invest in its various products even in the face of declining sales in 2020. The luxury brand, known for its tweed suits and No.5 perfume, spent a stunning $1.36 billion to support its brands last year.
“We’re beyond what some have called revenge buying, we believe it’s a deep and lasting momentum, which may not be true for all the players in the luxury industry but it’s true for the big brands which continued to invest as we did,” Blondiaux added.