Chanel confirms it is not for sale
Luxury fashion house Chanel has dispelled rumours it was planning a stock market listing after posting higher annual sales and profits on Monday.
The company also announced it is not for sale.
The French fashion label, owned by the Wertheimer family, said sales rose to nearly $11.1 billion (A$21.29 billion) in the year under the late designer Karl Lagerfeld who passed away last February.
This is only the second time the luxury brand has publicly announced its results in its 109-year history.
According to a CNBC report, Chanel’s chief financial officer Philippe Blondiaux had said the company was not for sale and has denied IPO claims.
“We’ve got to live with the fact that we are one of the most desirable brands in the market,” Blondiaux said. “These rumours will unfortunately keep coming back on a regular basis.”
“Chanel needs to remain independent, in order to have the freedom to make choices that go against the grain, such as no longer using exotic animal skins, or by harmonising prices.”
The fashion house, which was founded by Coco Chanel in 1910, announced it saw a 12.5 per cent increase in its 2018 revenues to $11.12 billion, while net profits rose 16.4 per cent to $2.17 billion.
The company has seen growth across all of its markets last year, led by Asia Pacific where sales increased 19.9 per cent. Sales in Europe rose 7.8 per cent and in the Americas 7.4 per cent.
The report indicated strong demand from wealthy Chinese consumers both in Europe and overseas has fuelled higher sales and profits in the luxury industry, in spite of a trade dispute between the United States and China.
Virginie Viard took over as Chanel’s new creative chief and delivered her first solo collection last month for the brand.
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