The news: Chanel’s creative shakeup is helping revive sales at the luxury brand.

• Sales rose by high-single-digit percentage points beginning in the second half of 2025 across product categories and regions, and that momentum continued in the first months of 2026, CFO Philippe Blondiaux said.
• Full-year comparable revenues for the 12 months ended December 31 increased 1.8% YoY—a notable turnaround from a 4.3% decline in 2024.
• Shoppers in the Americas drove growth, while sales in China turned positive in Q4, management said.

How we got here: Designer Matthieu Blazy’s critical and commercial appeal is helping Chanel reinforce its position as one of luxury’s most prestigious—and resilient—brands. While competitors like LVMH and Kering have suffered from declining sales and brand value, companies with high prestige and strong resale value, like Hermès, Chanel, and Cartier, are strengthening their hold on luxury spending.

• If Chanel sales rise by 10% this year, the brand would account for as much as a third of luxury sector growth, according to Morgan Stanley analysts.
• The company’s 2025 growth stands in marked contrast to competitors like LVMH, where organic revenues declined 1% YoY, and Kering, which had a steeper 10% drop.

Implications for luxury: Chanel’s rebound points to the importance of execution for luxury brands. The company has invested hundreds of millions of dollars in manufacturing following customer complaints about poor product quality, while spending heavily on events and store openings to broaden reach and deepen client engagement. Chanel is also limiting price increases, which could help rebalance its value perception and win back aspirational shoppers.