Chanel twice as profitable as LVMH
According to Challenges magazine, French independently owned maison of Chanel an increase of 25% after tax in its rate on return, compared to 12% for LVMH Group (owner of Louis Vuitton and Dior, among many other luxury brands) and 21% for Hermès at the end of fiscal year 2012. The audited accounts were “approved by the shareholders during a meeting held on 19 November 2013.”, a meeting held not in Neuilly-sur-Seine, where Chanel SA’s headquarters are located, but in the village of Zoetermeer, in the Netherlands, home to Chanel International BV, the holding company that controls the French luxury group.
Documents filed with the Dutch chamber of commerce showed annual turnover of 6.3 billion dollars (4.6 billion euros), up 7% as compared to fiscal year 2011. Exchange rate fluctuations aside, this seems to correspond to estimates of the company’s revenues as published last year by the American agency Bloomberg. The agency’s estimate thus put the group’s value at nearly 20 billion dollars. Chanel’s operating results, also according to Challenges, rose in 2012 to 1.46 billion dollars, up 17% as compared to the preceding fiscal year.
Challenges magazine notes that the fortune of Alain and Gérard Wertheimer, owners of the group and patrons of Karl Lagerfeld for over 30 years, may therefore well exceed the 20 billion dollar mark, thanks to the increase in the company’s value, which has more than tripled in four years.