RBC announced a drop in revenue for Chanel and Dior in Russia by more than 70%
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At the end of 2021, many branches of fashion houses in Russia reported record revenues. The sales leader then was Chanel with a revenue of 18.44 billion rubles. The top three also included Christian Dior (8.58 billion rubles) and Hugo Boss (7.61 billion rubles).
This year, the configuration of fashion houses has changed somewhat. Chanel’s revenue decreased by 75.6% to 4.5 billion rubles. Dior earned 2.01 billion rubles from sales in Russia, which is 76.1% less compared to 2021. Tiffany’s revenue also decreased by 74.4%: in 2022, the company earned 1.16 billion rubles. against 4.56 billion rubles. in 2021. In percentage terms, the smallest decrease was shown by Hugo Boss, which gained 6.27 billion rubles from sales in Russia. (-17.6% by 2021).
According to the reporting of the French concern LVMH, which includes Dior, Bvlgari, Tiffany & Co and others, despite the closure of retail outlets in Russia in March 2022, the company continued to pay salaries to employees. LVMH’s total revenue for the year increased by 23% and reached a record 79.2 billion euros.
After the start of the special operation in Ukraine and the imposition of sanctions, many foreign companies announced the suspension of their activities in Russia, leaving the country or reducing the import of their goods and production in Russia. Louis Vuitton Moet Hennessy (LVMH), as well as Prada, Chanel, Cartier and others announced the temporary closure of stores in the country. According to NF Group (formerly Knight Frank Russia), a total of about 180 foreign brands decided limit their work in Russia, about 15 announced plans to leave the market completely.
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