CHANEL reports negative financial performance for 2015

French luxury house of Chanel was negatively impacted by the decline in luxury spending last year, reporting a dramatic drop in both profit and sales, according to figures filed with the Amsterdam exchange.

Chanel International BV said operating profit in the year to Dec. 31 fell 23 percent to $1.6 billion while revenue declined 17 percent to $6.24 billion.

Controlled by  billionaires Alain and Gerard Wertheimer, Chanel is one of the world’s biggest luxury brands alongside LVMH’s Louis Vuitton.

Chanel declined to say what businesses and regions were included in the figures and refused to comment on them.

By comparison, Louis Vuitton, which also does not publish separate numbers, makes an estimated 8 billion euros in annual sales.

In France, Chanel filed numbers for its cosmetics and perfume businesses that showed revenue last year reached 2.6 billion euros ($2.91 billion), down 21 percent against the previous year.

To boost the sales of its No. 5, once the world’s most sold perfume, Chanel is this month re-launching the scent created in 1921 with a new version called “No. 5 L’eau.”

Chanel competes head on with L’Oreal and the group’s best-selling perfume “La Vie est Belle” by Lancome and with LVMH’s “J’adore” by Dior.

Chanel Fall Winter 2016 ad campaign