Chanel returns to growth as Blazy's designs win over new shoppers

Parisian fashion house Chanel has drawn in shoppers who had never bought the brand before, as creative director Matthieu Blazy’s reinvented versions of classic bags, shoes and jackets drove demand that outstripped supply and a return to growth.

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The privately owned company last week reported a 2% rise in revenue in 2025 in currency-adjusted terms to $19.3 billion. Chanel’s revenue had declined 4.3% in 2024 when even the most high-end fashion labels reached the limits of demand after making big price hikes in a post-pandemic luxury boom.

Mr. Blazy, who took over from Virginie Viard last year and presented his first collection in October, has reinvigorated the brand with designs such as the slouchy leather “maxi flapbag,” retailing for $8,500, and bright, frayed versions of the classic Chanel tweed jacket.

“What we saw in 2025 was a creative momentum across all our business activities,” Chief Executive Officer Leena Nair told Reuters in an interview, adding that investments made in 2024 had laid the foundations for the sales rebound.

Chanel’s operating profit also grew 5% to hit $4.7 billion, up from $4.5 billion in 2024 but lower than its level in 2021 to 2023.

‘DEMAND HAS FAR OUTSTRIPPED SUPPLY’

When Mr. Blazy’s first collection landed in stores in March shoppers flocked to buy new handbags, two-tone pumps in mint green and black for $1,450, and multicolored tweed jackets.