Fabrice Raoul appointed General Manager France for Chanel

Chanel, the timeless icon of French fashion, is not content with staying frozen in time. The Parisian fashion house has just announced a new appointment to head its French subsidiary, Chanel SAS: Fabrice Raoul, succeeding Luc Dony, who recently retired, and preparing to navigate the prestigious brand through the contemporary challenges of the luxury market. Fabrice Raoul is no newcomer making his first steps in the world of luxury. His exemplary career in finance and management control began far from the spotlights of fashion. Before making his first steps at Chanel, he gained solid experience working for various industrial multinationals. This financial background then led him to Bourjois, a cosmetics brand once owned by Chanel, where he held the position of financial director. In 2012, he joined Chanel, integrating the Perfumes and Beauty division. His rise was swift: within just two years, he was appointed CFO of this division, a position he transformed into a real springboard. His in-depth knowledge of the financial workings of the house and his ability to manage significant assets made him an ideal candidate for Luc Dony's succession.

His appointment comes in a context of transition and reorganization within Chanel. Luc Dony, the former CFO Europe and CEO of Chanel SAS, having retired last March, a seat has thus become vacant. A position Raoul seems determined to take. This handover is not just a simple change of name on an office door but a crucial step for Chanel's strategy in France. Bruno Pavlovsky, president of the Fashion and Métiers d’Art division and president of Chanel SAS who will work closely with Raoul, emphasized the importance of this appointment. A synergy aiming to ensure continuity in the vision and operations of the house, while introducing a fresh perspective thanks to Raoul's unique experience. The reshuffling within Chanel is not limited to Raoul's appointment: the house has recently seen several significant changes in its leadership team. Virginie Viard, the iconic creative director, has left her position, marking an end of an era for Chanel's artistic direction. In 2022, Leena Nair was appointed CEO of the group, bringing a new dynamic to the company. Concurrently, Chanel moved Joyce Green, former fashion manager in the United States, to be appointed general manager for the French market.

Unlike other luxury players who have struggled to maintain their level of performance, not to point fingers at Gucci, Chanel has posted impressive results for the 2023 fiscal year. The house recorded sales of 19.7 billion dollars, marking a 14.6% increase at constant exchange rates. A performance that is the result of sustained growth in all activity segments, particularly in Asia-Pacific and Europe. Net profit, although modestly up by 3% to reach 4.7 billion dollars, reflects strategic skillful management in an inflationary environment. Chanel has adjusted its prices to maintain profitability while continuing to attract a loyal clientele. In Paris, the Classic bag recently crossed the symbolic 10,000 euro mark, illustrating the brand's continued ascent in the high-end market. Under the leadership of Leena Nair, CEO of Chanel since 2022, the house has not only maintained its heritage but also reinforced its strategic initiatives. Leena Nair and Philippe Blondiaux, financial director, have praised the contributions of Virginie Viard, who succeeded Karl Lagerfeld in 2019. Since her arrival, ready-to-wear sales have doubled, and this segment saw a 23% growth last year. The house also continues the expansion of its distribution network. With 612 points of sale worldwide, including 47 opened in 2023, it strengthens its global presence. Most of the new openings were dedicated to beauty and perfume boutiques, benefiting from the recovery of travel retail. Meanwhile, it is exploring opportunities to invest in its real estate portfolio, with rumors suggesting the acquisition of a building on Fifth Avenue in New York. Despite these successes, Chanel is not immune to challenges. The luxury market is experiencing a phase of normalization after years of rapid growth, and Raoul will have to navigate this complex environment.