FACTS & FIGURES: Days after its spring fashion show, Chanel’s finances were under scrutiny in the French press. Le Monde in its Saturday edition, citing data uncovered by Challenges magazine, said since the start of this year, the French fashion house has invested 270 million euros, or $337.9 million at current exchange, in real estate, of which 85 percent was in Paris. This was principally to acquire ownership of its stores.
Last year, Chanel posted net profits of 726 million euros, or $964.2 million, versus 1.13 billion euros, or $1.5 billion, in 2012, which included an exceptional capital gain of 496 million euros, or $658.7 million, according to Challenges.
This story first appeared in the October 6, 2014 issue of WWD. Subscribe Today.
The magazine reported Chanel’s operating profits for 2013 were 1.15 billion euros, or $1.53 billion, up 8.5 percent versus 2012. Meanwhile, company sales also gained 8.5 percent, to 4.98 billion euros, or $6.61 billion, in 2013.
A Chanel spokeswoman had no comment. Dollar figures are converted at average exchange for the period to which they refer.