Chanel has reported a bumper financial year in 2025, driven by demand for fragrance and skin care.
The luxury beauty and fragrance house reported revenues of US$19.3bn, up 2% compared with 2024, and operating profit of $4.7bn, an increase of 5%.
Chanel also invested an estimated $2.3bn in 2025 to support brand activities and had an Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of $5.4bn.
“Our 2025 positive performance was driven by our continued long-term approach, unprecedented investments in our savoir-faire and a year of exceptional creative momentum,” said Leena Nair, Global CEO at Chanel.
“We are delighted to see the excitement around the brand throughout last year and into 2026.
“Creation and beauty are vital sources of joy and inspiration, and we are relentlessly committed to creating the ultimate experience for our clients around the world, from our most loyal to those discovering us for the first time.”
Chanel’s fragrance and beauty division performance was driven particularly by perfume and skin care.
Growth in fragrance was supported by strong demand for eau de parfum Chance Eau Splendide, with a campaign featuring ambassador Angèle, a Belgian singer-songwriter.
New ranges were also rolled out, including Bleu De Chanel L’exclusif, Les 4 Ombres Boutons and Sublimage L’Extrait Huile Lèvres.
Chanel also opened more than 25 new dedicated fragrance and beauty boutiques, rolled out its new Fragrance & Beauty app, and launched ecommerce capabilities in Mexico and Argentina.
Philippe Blondiaux, Global CFO at Chanel, added: “Chanel delivered a strong financial performance in 2025, with growth across all business activities.
“This performance is a reflection of our commitment to further expand our savoir-faire, our worldwide boutique network and our client experience.
“Free cash flow increased by 44% year-on-year, and we continued to progress operating profit, while investing relentlessly in our brand for the long-term.”
Chanel continued to invest in research and development across its three main business activities, which also include watches, fine jewellery and fashion, throughout 2025.
For fragrance and beauty, this included a focus on skin care and the development of new ingredients.
2025 also marked the start of the Chanel Open Lab, a new collaborative platform that aims to speed up the delivery time for concepts and prototypes by co-creating with external innovators.
Blondiaux continued: “Following record levels of investment in real estate in 2024, capital expenditure remained at an elevated level in 2025.
“We opened more than 40 boutiques spanning more established markets, including Japan and Mainland China, and newer markets, such as the Middle East and Mexico.
“We continued to invest in the future of our brand and our people, whether through a new fragrance manufacturing facility in France, our new global headquarters in London, or through the continued development of our broader creative ecosystem.”
Related content:
- Henkel’s Q1 2026 group sales declined as M&A activity impacts bottom line
- L’Oréal sales surge 7.6% in Q1 driven by ‘step up’ in innovation
- Hermès shares sink as Q1 results uncover impact of Iran war and tourism drop
- Douglas Group Q1 sales grow 1.7% in ‘challenging’ market
- Coty sales sink 6% as prestige and consumer beauty lag in Q1
- Estée Lauder Companies’ Q1 sales beat estimates as turnaround takes hold in ‘pivotal year’