Luxury brand Chanel’s 2020 revenues and profit would be significantly hit by COVID-19
Like rivals, Chanel had to shut shops across the globe and idle manufacturing sites as the virus first emerged in the sector’s key market of China and then spread to the rest of the world.
Some 85 per cent of the group’s stores have now reopened and it has seen sales rebound in China - by over 100 per ce nt in some weeks. Shoppers were returning in Paris, Milan and Berlin, he said.
Chanel, which still expects to turn a profit this year, is reducing advertising and promotions by more than a quarter, cutting production and has cancelled or transformed some events like fashion shows this year, including by streaming them online.
Chanel would forgo dividend payments in 2020, Blondiaux added. These payouts largely go to Chanel’s billionaire owners, brothers Alain and Gerard Wertheimer, and almost doubled in 2019.
