BUSINESS | Chanel Warns Virus Impact Will Linger On Luxury Sector


MILAN – The luxury industry will feel the fallout from the coronavirus crisis for the next two years if not longer, Chanel’s chief financial officer said on Thursday, warning the French fashion label’s 2020 revenues and profit would be significantly hit.

Privately-owned Chanel – known for its tweet suits, quailed handbags and No.5 perfume is one of the biggest luxury brands in the world alongside LVMH’s Louis Vuitton.

It did not give details of the slide in sales so far this year but the next 12 to 18 months would be particularly tough, finance chief Philippe Blondiaux told Reuters, adding that a strong recovery in countries where the group’s shops have reopened could not make up for the lack of international travel.

‘We anticipate that the external environment will continue to impact the luxury sector negatively for at least the next 18 to 24 months’, he said in a phone interview after the group reported 13% growth in comparable sales for 2019.

Like rivals, Chanel had to shut shops across the globe and idle manufacturing sites as the virus first emerged in the sector’s key market of China and then spread to the rest of the world.

Some 85% of the group’s stores have now reopened and Blondiaux said Chanel had seen sales rebound in China – by over 100% in some weeks. Shoppers were returning in Paris, Milan and Berlin, he said.

‘This very strong performance with the local clientele will be insufficient to compensate for the absence of international business, for the absence of international visitors and for the fact that our duty free business…is still to a very large extent closed’, he said.

Consultancy Bain says the $310 billion luxury goods sector is on course for a sales fall of up to 35% this year.

Chanel, which still expects to return a profit this year, is reducing advertising and promotion by more than a quarter, cutting production and has cancelled all events including fashion shows this year, Blondiaux said.


TRAVEL | Saudi Interior Ministry To Announce Date Of Lifting Of Travel Restrictions

RIYADH – – Saudi Arabia’s interior ministry said on Tuesday it will later announce a date of lifting restrictions on citizens traveling to and from the Kingdom. The Kingdom partially lifted a suspension of international flight on Sept.15, six months after travel restrictions were imposed because of the novel coronavirus pandemic. Saudi authorities had originally … Continue reading TRAVEL | Saudi Interior Ministry To Announce Date Of Lifting Of Travel Restrictions

BUSINESS | Japan Nike Ad On Bullying, Racism Sparks Hot Online Response

MILAN – A video ad from Nike Japan against bullying and racism that features biracial athletes and other minorities, such as those of Korean descent, has prompted a sharp online response including calls to boycott the company. Japan has traditionally prided itself on being racially homogenous, although successful mixed – race athletes such as tennis … Continue reading BUSINESS | Japan Nike Ad On Bullying, Racism Sparks Hot Online Response

BREAKING NEWS | Saudi Crown Prince Congratulated President of UAE on National Day

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, has sent a cable of congratulation to Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates (UAE), on the anniversary of his  country’s National Day. In his cable, HRH Prince Mohammed Bin Salman wished the … Continue reading BREAKING NEWS | Saudi Crown Prince Congratulated President of UAE on National Day

NEWS ALERT | Saudi Crown Prince Congratulates Romania’s President On National Day

HRH Prince Mohammed bin Salman Bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, has sent a cable of congratulation to President Klaus Iohannis of Romania on the anniversary of his country’s National Day. In his cable, HRH Crown Prince Mohammed bin Salman wished the President constant good health and happiness … Continue reading NEWS ALERT | Saudi Crown Prince Congratulates Romania’s President On National Day

TRAVEL | Saudi Arabia Is Among 6 Safest Travel Destinations In World, In Light Of Covid-19 Pandemic

The Kingdom of Saudi Arabia has ranked 6th among the world safest travel destinations, in light of the novel Coronavirus (Covid-19) pandemic, and the only one in the Middle East. This come according to an article published on the Wego Travel Blog website, entitled ‘Safe Placed to Travel During Covid -19 Pandemic”. The classification was … Continue reading TRAVEL | Saudi Arabia Is Among 6 Safest Travel Destinations In World, In Light Of Covid-19 Pandemic

NEWS ALERT | Jordan’s King Abdullah And Palestinian Leader Abbas Meet, Hope Biden Revives Peace Process

Jordan’s King Abdullah on Sunday met with Palestinian President Mahmoud Abbas and both leaders et high hopes the U.S. President – elect Joe Biden will revive peace talks over a two-state solutions to the decades – old Arab – Israeli conflict, officials said. In a palace statement after meeting with Abbas in the Red Sea … Continue reading NEWS ALERT | Jordan’s King Abdullah And Palestinian Leader Abbas Meet, Hope Biden Revives Peace Process

NEWS ALERT | Trump Senior Aide Kushner And Team Heading To Saudi Arabia, Qatar

White House senior advise Jared Kushner and his team are headed to Saudi Arabia and Qatar this week for talks in a region simmering with tension after the killing of an Iranian nuclear scientist. A senior administration official said on Sunday that Kushner is to meet Saudi Crown Prince Mohammed bin Salman in the Saudi … Continue reading NEWS ALERT | Trump Senior Aide Kushner And Team Heading To Saudi Arabia, Qatar

NEWS ALERT | France Must Review COVID-19 Crowd Limits On Church Attendance

France’s State Council, the country’s highest court, on Sunday ordered the government to review a law limiting the number of people in churches during religious services to 30. The Council said in a statement that the measure was not proportionate to coronavirus infection risk. Last week, the government announced that a nationwide lockdown in place … Continue reading NEWS ALERT | France Must Review COVID-19 Crowd Limits On Church Attendance

LIFESTYLE | Moscow Opens Its Biggest Outdoor Ice Rink For Winter Amid Pandemic

RIYADH – – Across town one ice rink has been converted into a COVID-19 hospital, but some Moscow residents took to the ice late on Friday as the city’s biggest outdoor rink opened for winter during the pandemic. The rink in the Soviet – era VDNKh amusement park in northern Moscow opened its doors despite … Continue reading LIFESTYLE | Moscow Opens Its Biggest Outdoor Ice Rink For Winter Amid Pandemic

NEWS ALERT | Qatar Condemns Killing Of Iranian Nuclear Scientist – Statement

MILAN – Qatari Foreign Minister Mohammed bin Abdulrahman Al-Thani condemned the killing of Iranian nuclear scientist Mohsen Fakhrizadeh in a phone call on Saturday with his Iranian counterpart, Mohammad Jawad Zarif, a ministry statement said. Al-Thani extended Qatar’s condolences to the government and the people of Iran and called for self-restraint following Friday’s killing which … Continue reading NEWS ALERT | Qatar Condemns Killing Of Iranian Nuclear Scientist – Statement

Loading…

Something went wrong. Please refresh the page and/or try again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s