Chanel Returns to Growth in 2025

In the current global luxury landscape, these results stand out in a market now dominated by more selective growth. The euphoric cycle of 2021–2023 is now a thing of the past. After years of expansion driven by the post-pandemic recovery and the surge in US and Chinese demand, the global luxury sector now faces a more cautious and far more demanding clientele. Growth remains, but it now primarily benefits those brands capable of maintaining their cultural clout.

Against this backdrop, Chanel is demonstrating its resilience compared to most of its direct competitors. Indeed, LVMH’s fashion and leather goods businesses declined by around 8% in 2025, whilst Kering continues to suffer from the Gucci crisis (-19% in 2025). Only Hermès has been able to maintain superior momentum, with growth of close to 9%.

Whilst Hermès’ strategy is based on scarcity and limited volumes, the Rue Cambon-based house, the world’s second-largest luxury brand, continues to invest heavily in the expansion of its network and in the brand’s global desirability.

The real driving force behind the rebound appears to be more creative than financial: Matthieu Blazy’s arrival as creative director in 2025 proved decisive and sparked renewed interest in the house.

Thanks to spectacular fashion shows, the rise of high jewellery, a more aggressive beauty strategy and a fresh take on the narrative surrounding Gabrielle Chanel, the house has successfully capitalised on its strengths in a climate where the market has become more hesitant.

According to retailers, Chanel attracted a significant wave of new customers in 2025, a phenomenon that has become rare — and valuable — in the ultra-premium luxury sector. The brand topped the Lyst Index for the first time, the fashion shopping platform that brings together nearly 160 million shoppers each year.

In her press release, CEO Leena Nair emphasised that this recovery is underpinned by an ambitious investment strategy as well as the brand’s creative strength. Chanel has notably capitalised on the success of the new Chanel 25 bag (priced from €5,600), one of the year’s most viral launches, as well as on the reinterpretation of the J12, an iconic watch introduced in the early 2000s.