Core Viewpoint - Chanel reported a global revenue decline of 5.3% to $18.7 billion and a net profit drop of 28.2% to $3.4 billion, indicating challenges in certain markets despite being a key indicator in the luxury goods sector [1][2]. Market Performance - Sales in the Americas decreased by 4.3%, while the Asia-Pacific region saw a more significant decline of 9.3%. In contrast, the European market showed slight resilience with a 1.2% increase [1]. - China remains a vital market for Chanel, with 127 stores and plans to open an additional 15 stores, reflecting the brand's commitment to this region [1]. Business Segments - The ready-to-wear segment experienced a growth of 23% in 2023 and has maintained positive growth in 2024, raising questions about the impact of rising handbag prices on overall performance [1]. - Since 2019, Chanel has implemented a strategy of increasing handbag prices to enhance their investment value, with the price of the classic flap CF bag doubling from 38,100 RMB to 84,000 RMB in China [1]. Pricing Strategy - The recent performance decline raises questions about Chanel's pricing strategy, especially as competitors like Hermès have raised prices in response to U.S. tariff issues [2]. - Chanel's CFO indicated that the company is currently observing the unstable U.S. tariff situation before making any pricing decisions [2]. Expansion Plans - In 2024, Chanel plans record investments, focusing on acquiring high-end properties in Paris and New York, and expanding its store network in China and Japan, showcasing a more aggressive expansion strategy compared to cautious peers [2]. Creative Direction - Chanel appointed Matthieu Blazy as the new artistic director, marking a significant leadership change within the brand. His debut is scheduled for October, and there are speculations about potential entry into the menswear market, despite previous statements against it [2][3]. - The brand emphasizes the need for time to understand its essence under the new leadership, indicating a long-term vision rather than immediate results [3].