French Luxury Brand Chanel’s Profits + 38% In FY 2014

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The billionaire brothers who own Chanel have become almost $3-B wealthier this year after the luxury company reported a 38% rise in annual profit.

Alain and Gerard Werthheimer each have $11.8-B fortunes and are the 6th and 7th-richest people in France, according to the data. Almost all of their fortunes stem from their stake in Chanel, which reported FY 2014 revenue of $7.5-B and net income of $1.4-B.

Chanel International BV files the closely held company’s global financial results with Kamer van Koophandel of the Dutch Chamber of Commerce.

Net profit for the 5 publicly traded companies the index uses to value Chanel: Prada, Kering, LVMH, L’Oreal and Estee Lauder was down a collective 6% in their FY 2014 numbers.

“Chanel is having extraordinary success in China and with the Chinese, hence their recent phenomenal growth,” said Luca Solca, head of luxury goods research at Exane BNP Paribas in London.

The Wertheimers’ fortunes have risen 13% since January 2014, ranking then among the world’s 100 richest people.

Eight other luxury goods billionaires from the Billionaire’s index: Liliane Bettencourt, Bernard Arnault, Francois Pinault, Leonard Lauder, Giorgio Armani, Cheng Yu-Tung, Ralph Lauren and Johann Rupert  have fallen a combined 11% over the same frame, as luxury demand in China slowed following a clampdown on graft.

Miuccia Prada, Chairman of Prada SpA fell off the index after her fortune declined 26% this year to $3.6-B, making her the world’s 437th-richest person.

Have a terrific week.

HeffX-LTN

Paul Ebeling

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