Chanel is growing again: Blazy’s jackets pulled in people who had never bought the brand

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

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

Blazy, who took over from Virginie Viard and presented his first collection in October, reinvigorated the brand with designs such as the slouchy leather “maxi flap bag” at $8,500 and bright, frayed versions of the classic tweed jacket. “What we saw in 2025 was a creative momentum across all our business activities,” CEO Leena Nair said, adding that investments made in 2024 laid the foundations for the rebound.

Operating profit grew 5% to $4.7 billion, up from $4.5 billion in 2024 but still below its 2021 to 2023 level.

When Blazy’s first collection landed in stores in March, shoppers flocked to the new handbags, two-tone pumps in mint green and black at $1,450, and multicoloured tweed jackets. “The recruitment of new clients — who hadn’t previously bought Chanel — has been phenomenal,” said Simon Longland, director of fashion buying at Harrods. “The demand has far outstripped supply, correctly so on some of the special pieces 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.”

Against rivals the picture is mixed: Hermès grew faster, up 9.8% to €16 billion, while LVMH’s fashion and leather goods division, including Louis Vuitton and Dior, declined 5% to €37.77 billion.

Despite Trump’s tariffs, the US drove most of the growth, with Americas sales up 7.2% in currency-adjusted terms. Asia-Pacific, Chanel’s biggest region, declined 0.8%, and Europe grew 2.5%. Chanel raised prices 3% overall and 2% on fashion in 2025 and plans similar increases this year, said CFO Philippe Blondiaux. Having opened 41 stores last year, it plans 30 this year, including nine fashion boutiques, with openings in Boca Raton, Florida, and Palo Alto and San Diego in California.

Chanel’s success cuts both ways for the market. “The bears, where our own view is currently tilted, would argue that in the context of anaemic industry growth, Chanel’s revival has to come at the expense of peers,” Morgan Stanley analysts wrote. There is another reading: “I view it as a good indicator for luxury that Chanel is creating a buzz that you’ve just not had in quite a few years,” said Harsharan Mann of Aviva Investors. “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.”

The high street noticed immediately: copycat looks have proliferated in recent months, from a faux-tweed yellow and black check fringed jacket for $169 at Zara to a cropped cream jacket with Chanel-esque gold buttons for $59.99 at H&M.