Chanel returns to growth as Blazy's designs lure new shoppers

Chanel posted 2% revenue growth in 2025, reaching $19.3 billion, as new creative director Matthieu Blazy's redesigned handbags and jackets drew customers who had never bought the brand before, the French luxury house announced Tuesday.

The rebound, driven by Matthieu Blazy's debut collection, arrives as much of the luxury sector contracts — making Chanel's turnaround a closely watched test of whether new creative leadership can revive flagging consumer demand across the industry.

Operating profit climbed 5% to $4.7 billion from $4.5 billion the prior year, Chanel said. Chief Executive Officer Leena Nair told Reuters the results reflected broad momentum. "What we saw in 2025 was a creative momentum across all our business activities," Nair said.

Blazy, who succeeded longtime creative director Virginie Viard, presented his debut collection in October 2025; the pieces reached stores in March 2026. His signature reworkings — a slouchy leather "maxi flapbag" priced at $8,500 and $1,450 two-tone pumps in mint green and black — generated demand that outpaced supply. Simon Longland, director of fashion buying at Harrods, told Reuters that "the recruitment of new clients — who hadn't previously bought Chanel — has been phenomenal."

Longland said the supply constraint was intentional. "The demand has far outstripped supply, correctly so on some of the special pieces," he told Reuters, "because, while there may be people disappointed they don't have the jacket they wanted, if everyone who wanted the jacket had got it, they would all be arriving somewhere in the same jacket."

Chanel raised prices 3% overall and 2% for fashion in 2025 while opening 41 new stores, with 30 more planned for 2026. By region, the Americas led with currency-adjusted growth of 7.2%; Europe gained 2.5% and Asia-Pacific edged down 0.8%. The Middle East, accounting for 4% of revenue, remained resilient despite regional tensions.

Analysts were cautious about drawing broader conclusions. Morgan Stanley analysts wrote that "in the context of anaemic industry growth, Chanel's revival has to come at the expense of peers." Yet Harsharan Mann, portfolio manager and consumer sector lead at Aviva Investors, told Reuters she viewed the brand's momentum as a positive signal. "Chanel's success does show luxury really is an offer-driven market and even in a tougher economic environment, if you bring in new creativity it can drive interest and sales," she said.

Blazy's aesthetic has already reached high-street imitators: Zara began selling a faux tweed jacket for $169, while H&M offers a similar style at $59.99 — a pattern retail analysts say typically follows a surge in aspirational demand for a heritage brand.