Chanel’s Australian profits jump as luxury goods market soars

However, in an interview with the Financial Times last week, Chanel’s global chief executive, Leena Nair, said she was cautiously optimistic about the outlook for luxury goods, noting pent-up demand for products in markets such as China.

Luxury fashion operators have been resilient despite global economic jitters and predictions about a broader slowdown in discretionary spending.

The world’s largest luxury goods company, LVMH, smashed analysts expectations last month when it reported a 17 per cent jump in quarterly sales to €21 billion ($34 billion). The company told investors that the numbers marked an “excellent start to the year” despite uncertainties about the global outlook.

“Asia experienced a significant rebound following the lifting of health restrictions,” the company said.

Demand for designer goods has also remained strong across Australia’s second-hand market, including platforms such as eBay. Data from eBay Australia this year revealed that the listing price of a second-hand Coco Top Handle bag by Chanel increased from $3700 to $7000 between 2019 and 2022.

Local retail analysts have recently pointed out that a “two-speed” consumption pattern is emerging in Australia, with high-income earners still more than happy to spend on discretionary goods at the same time as lower-income Australians are cutting back.

“The tight economy shines favourably on higher-income groups due to the wage gains they are experiencing and ownership of assets,” UBS said in a note to clients last month.

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