June 18, 2020 / 12:05 PM / 23 days ago

Gloomy Chanel sees virus impact on luxury sector for 18-24 months

MILAN/PARIS, June 18 (Reuters) - 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 tweed suits, quilted handbags and No.5 perfume and one of the biggest luxury brands in the world alongside LVMH’s Louis Vuitton - 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 a 13% growth in comparable sales for 2019. (Reporting by Silvia Aloisi, Editng by Sarah White)

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