'First Domestic Sales Disclosure' Chanel Sold 930 Billion KRW Worth in Korea Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Chanel Korea, which disclosed its sales for the first time since establishing its domestic corporation, recorded sales of 930 billion KRW last year.

According to Chanel Korea's audit report on the 14th, last year's sales amounted to 929.5 billion KRW, a 13% decrease compared to the previous year. Operating profit during the same period increased by 34% to 149.1 billion KRW.

Chanel Korea operates both its domestic business division and duty-free business division within a single company. While other luxury brands operate their duty-free divisions as separate partner companies, resulting in separate performance records, Chanel manages both under one company. Considering that the duty-free industry was in a state of "complete shutdown" last year due to COVID-19, it is analyzed that the domestic business division achieved significant sales growth.

Sales in the domestic business division grew by 26%, whereas the duty-free division declined by approximately 81% compared to the previous year. Looking at the domestic business division's performance, the fashion sector, including bags and apparel, recorded double-digit growth rates, and sales growth rates for watches and Fine Jewellery also reached double digits.

This is the first time Chanel Korea's performance has been disclosed since the domestic corporation was established in 1991. Until now, Chanel Korea was a limited company without an external audit obligation and was not required to disclose its performance. However, starting this year, limited companies with assets and sales exceeding 50 billion KRW are subject to the new External Audit Act (Act on External Audit of Stock Companies, etc.), similar to stock companies, and thus released an audit report.