Chanel vs Hermès: Revenue, Profit and Business Model
Chanel reported $19.3B of revenue in FY2025 and $2.9B of net income. Hermès reported ~$18.1B of revenue in FY2025 and ~$5.1B of net income.
Latest financial snapshot
Financial summary
Chanel
Chanel has published annual results since 2018 even though it is private. Revenue grew from $15.6 billion in 2021 to $17.2 billion in 2022 and a peak of $19.704 billion in 2023, slipped to $18.699 billion in 2024 as luxury demand cooled, then recovered to $19.269 billion in 2025. 2025 operating profit rose 5.2% to $4.712 billion (about a 24% margin), while profit after tax fell 14.3% to $2.913 billion. Management said sales accelerated to high-single-digit growth in the second half of 2025 and that momentum continued into 2026; press reports later cited roughly 16% like-for-like growth in the first half of 2026. The Americas grew more than 7% in 2025, while Asia-Pacific, Chanel's largest region, was slightly down.
Hermès
Hermès grew revenue from ~$10.1B (€8.98B) in 2021 to ~$18.1B (€16.0B) in 2025. In 2025 sales rose 5.5% reported and 8.9% at constant currency, recurring operating income reached ~$7.42B (€6.57B) (41.0% of sales) and net profit was ~$5.11B (€4.52B), held back by France's exceptional surtax on large companies (~$5.49B (€4.86B) adjusted). The balance sheet carries a restated net cash position of ~$14.5B (€12.8B) at end-2025 and no meaningful debt. In H1 2026 revenue was ~$9.22B (€8.16B) (+6.1% constant currency, +1.6% reported) with a 41.0% margin, but Q2 growth slightly missed forecasts and the shares fell roughly 37% in 2026 amid weak Chinese demand.
Revenue and profit by year
Chanel
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $19.3B | $2.9B | 15.1% | +3.0% | Source |
| FY2024 | $18.7B | — | 0.0% | -5.1% | Source |
| FY2023 | $19.7B | — | 0.0% | +14.6% | Source |
| FY2022 | $17.2B | — | 0.0% | +10.3% | Source |
| FY2021 | $15.6B | — | 0.0% | — | Source |
Hermès
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$18.1B | ~$5.1B | 28.3% | +5.5% | Source |
| FY2024 | ~$17.1B | ~$5.2B | 30.3% | +13.0% | Source |
| FY2023 | ~$15.2B | ~$4.9B | 32.1% | +15.7% | Source |
| FY2022 | ~$13.1B | ~$3.8B | 29.0% | +29.2% | Source |
| FY2021 | ~$10.1B | ~$2.8B | 27.2% | — | Source |
Where the revenue comes from
Chanel
- Fashion and Leather Goods
Not disclosed
Ready-to-wear, haute couture, handbags, shoes and accessories sold exclusively through Chanel boutiques. This is the brand's image engine and the focus of price increases and Blazy's creative reset.
- Fragrance and Beauty
Not disclosed
No. 5, Coco Mademoiselle, Bleu de Chanel, makeup and skincare, sold through department stores, perfumeries, travel retail and online. It reaches the widest customer base.
- Watches and Fine Jewelry
Not disclosed
The J12, Première and Boy·Friend watches, Coco Crush jewelry and annual high-jewelry collections, sold in boutiques and dedicated Place Vendôme salons.
Hermès
- Leather Goods and Saddlery44%
Bags, travel items, small leather goods and equestrian products; ~$7.99B (€7.07B) in 2025, up 13.1% at constant currency.
- Ready-to-Wear and Accessories28%
Men's and women's ready-to-wear, belts, costume jewelry, gloves, hats and shoes; ~$5.12B (€4.53B) in 2025.
- Silk and Textiles6%
Carré scarves, ties and textiles; ~$1.08B (€0.96B) in 2025.
- Other Hermès Sectors~13%
Jewelry, home, tableware, and other categories that extend the house into broader luxury living.
- Perfume and Beauty3%
Fragrance and Hermès Beauty; ~$554M (€0.49B) in 2025, down 7.6% at constant currency against the 2024 Barénia launch.
- Watches3%
Watches including the H08 line; ~$622M (€0.55B) in 2025, down 1.5% at constant currency.
- Other Products2%
John Lobb, Saint-Louis, Puiforcat and production for non-group brands (textile printing, tanning); ~$395M (€0.35B) in 2025.
Business model and strategy
Chanel
How it makes money
Chanel makes money from one brand sold across two very different businesses. Fashion (ready-to-wear, handbags, shoes, couture) is sold only through Chanel's own boutiques, with no online sales of handbags or clothing in most markets and no discounting. Fragrance and beauty (No. 5, Coco Mademoiselle, Bleu de Chanel, makeup and skincare) reach a far wider audience through department stores, perfumeries and e-commerce.
Growth strategy
Chanel's growth plan rests on creative renewal under Matthieu Blazy, continued price increases on core leather goods, larger and more private boutiques for top clients, expansion in watches, fine jewelry and beauty, and vertical integration of its supply chain.
Competitive advantage
Chanel's advantage is a century-old brand that can be expressed in every luxury category, combined with private ownership. Because the Wertheimer family does not answer to public shareholders, Chanel can keep investing through downturns: in 2025 it opened more than 40 boutiques and invested more than $700 million in suppliers and craft capabilities even as rivals cut back.
Hermès
How it makes money
Hermès sells its own products through roughly 300 exclusive stores (mostly directly operated) and hermes.com, with very little wholesale. About 55% of objects are made in in-house and exclusive workshops and 75% are made in France (2025). Leather Goods and Saddlery is the engine: ~$7.99B (€7.07B) of 2025 revenue (44%), with output capped by the number of trained artisans, so demand runs ahead of supply.
Growth strategy
Hermès grows mainly through price increases, gradual leather capacity additions of roughly one new French workshop per year, store renovations and selective openings (Scottsdale and Nashville in 2025), and categories beyond bags such as jewelry, home and ready-to-wear. It avoids acquisitions of other brands and buybacks, and returns cash through dividends (€18.00 per share proposed for 2025).
Competitive advantage
Hermès's moat is artisan capacity that competitors cannot buy quickly. Its leather bags are hand-made by craftspeople trained in its own schools (12 Hermès École des savoir-faire sites by end-2025), and the group opened its 24th leather goods workshop in L'Isle-d'Espagnac in 2025, with Loupes (2026), Charleville-Mézières (2027), Colombelles (2028) and Les Andelys (by 2030) planned.
Questions about Chanel vs Hermès
Which company has higher revenue — Chanel S.A. or Hermès International?
Chanel S.A. reported $19.3B (FY2025), while Hermès International reported ~$18.1B (FY2025). By last reported revenue, Chanel S.A. is the larger business, with Hermès International reporting a smaller revenue base.
What is the market cap of Chanel S.A. vs Hermès International?
Hermès International has a market capitalisation of $162.0B. A public market cap figure for Chanel S.A. was not available (it may be privately held).
Which is more financially efficient — Chanel S.A. or Hermès International?
Chanel S.A. generates $507k / employee in revenue per employee, while Hermès International generates $667k / employee. Hermès International shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Chanel S.A. and Hermès International make money?
Chanel S.A. and Hermès International generate revenue in fundamentally different ways. Chanel S.A.: Chanel makes money from one brand sold across two very different businesses. Hermès International: Hermès sells its own products through roughly 300 exclusive stores (mostly directly operated) and hermes.
Is Chanel S.A. bigger than Hermès International?
By last reported revenue, Chanel S.A. ($19.3B (FY2025)) is the larger company compared to Hermès International (~$18.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Chanel vs Hermès overview