PARIS — Chanel is closing on luxury’s ultra-exclusive $20 billion threshold, reporting revenues gained 17 percent last yr to $17.22 billion, while operating profits rose 5.8 percent to $5.78 billion.

The French fashion house trumpeted double-digit growth across all product lines, and noted retail teams “nurtured local clienteles” during pandemic restrictions, alluding to lockdowns in China that dented luxury growth last yr.

Revenues in Asia-Pacific gained 14.3 percent to $8.65 billion on a comparable basis, stripping out the impact of currency fluctuations and changes in company structure. Revenues improved 29.6 percent in Europe to $4.72 billion and 9.5 percent within the Americas to $3.86 billion.

In an announcement, Leena Nair, Chanel’s global chief executive officer, said the strong financials “reflect the strength of our brand, our client relationships, and the liberty of creation that defines every part we do.”

“Our fundamental belief is that after we concentrate on constructing our brand’s strength, engaging with our clients, taking good care of our people and integrating a long-term perspective in every part we do, our financial performance will follow,” she added.

Investments in “brand-support activities” shot up 14.3 percent last yr to $2.05 billion, underscoring how luxury’s biggest players are gaining mind share and gobbling up market share via heavy investments in promoting, splashy global events and client-centric activities.

Along with its lavish ready-to-wear and high fashion displays in Paris, Chanel unveiled its cruise 2023 collection last yr in Monte-Carlo, and repeated that show in Miami later within the yr. It also made history as the primary European luxury brand to stage a fashion show in sub-Saharan Africa, unveiling its Métiers d’Art collection within the Senegalese capital of Dakar.

Capital expenditures last yr totaled $668 million, representing 3.9 percent of sales, with the lion’s share of the cash poured into Chanel’s global retail network. Key openings in 2022 included a revamped and enlarged watches and high quality jewelry boutique at 18 Place Vendôme in Paris, and a latest Ginza Namiki flagship in Tokyo. Expanding Chanel’s network of standalone fragrance and wonder boutiques was one other priority.

“Investment in digital initiatives and knowledge technology systems also remained a key area of focus in supporting the client experience and business operations, and e-commerce capabilities continued to expand worldwide,” it added.

Chanel grew its headcount by 12 percent last yr and counted 32,116 employees worldwide at the top of 2022. Hirings were focused particularly on digital, IT and sustainability roles, with the variety of the latter experts vaulting 60 percent.

Nair and Philippe Blondiaux, group chief financial officer, expressed a positive outlook despite broad macroeconomic challenges and market uncertainties.

“We remain confident in our ability to deliver sustainable and healthy growth, committed to our people, our clients and our brand,” Blondiaux said in an announcement Thursday.

In a telephone interview, Blondiaux said 2022’s momentum has carried over into 2023 and it’s tracking double-digit gains in Mainland China. He acknowledged business has “softened” within the U.S. since November and it continues to accomplish that. “We’re still growing single digits within the U.S.,” he noted.

“As we glance forward, our priorities are clear, focused on our belief within the transformative role of creation, our desire to have a positive impact on this planet, and to all the time stay ahead of the curve,” Nair added, quoting house founder Gabrielle Chanel, who once declared “être de ce qui va arriver” (to be a part of what happens next, in English).

Individually on Thursday, Chanel announced plans to expand its global headquarters in London and move its teams to a latest constructing at 38 Berkeley Square by the top of 2025.

Design by architects Piercy and Co. and to be constructed “to the best standards of sustainability and accessibility,” the brand new constructing is greater than double the scale of the present Chanel headquarters within the Time & Life Constructing at 1 Bruton Street.

Chanel moved its global headquarters to London from Latest York in 2018.

Its tenancy agreement at the brand new constructing is for 20 years, with an option to increase to 30 years, demonstrating “Chanel’s intention to proceed to grow its global community in one of the creative, international and diverse cities on this planet,” the corporate said.

Chanel noted it plans to rent about 5,000 more employees in 2023.

The corporate doesn’t break down sales by product category. In fashion, it flagged “exceptional growth across all categories, particularly in leather goods and shoes.”

Chanel described “sustained momentum” in watches and high quality jewerly, driven specifically by Coco Crush collections and the relaunch of the Première watch.

“Fragrance and wonder benefited from the regular return of travel retail, in addition to sustained demand from local clientele,” the corporate said. Key launches last yr include the eco range No. 1 de Chanel, and the makeup products Rouge Allure L’Extrait and Les 4 Ombres Tweed makeup.

Chanel ended 2022 with a net money position of $2.37 billion, up 322.3 percent versus the prior yr, while free money flow decreased 22.2 percent to $3.53 billion.

Profit after taxes amounted to $4.6 billion euros, up 14.2 percent versus the prior yr.

Chanel’s 2022 growth represents a slowdown from 2021, when its revenues shot up 22.9 percent at comparable rates to $15.6 billion.

The group’s numbers also got here in below luxury conglomerate LVMH Moët Hennessy Louis Vuitton, which saw revenues jump 23 percent in 2022 as a complete, while its flagship brand Louis Vuitton shot well past 20 billion euros in revenues, maintaining its stature because the industry’s largest player in fashion and leather goods.

Overall sales at Hermès International were also up by 23 percent in comparable terms in 2022.

Meanwhile Kering, saddled by problems at Gucci and Balenciaga, saw full-year 2022 revenues rise only 9 percent. 

Alongside its financial results, Chanel highlighted efforts to respect the environment and support its employees, a mirrored image of the expertise of Nair, who joined the French fashion and wonder house in January 2022 from Unilever, where she was chief human resources officer.

“With our expanding international footprint, we’re determined to contribute positively to the environment and our communities,” Nair said, noting the corporate would significantly increase funding of Fondation Chanel, a philanthropic organization focused on gender equality. In 2022, funding was raised to $100 million annually.

Blondiaux noted the corporate last yr took steps “to support our people through inflationary pressures and continued periods of uncertainty, with tailored training, commitment to pay equity and access to flexible working.”

Employees received “an exceptional mid-year salary increase,” the corporate noted.