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Chanel shareholders win $5 billion in dividends as luxury goods sales surge

Chanel released a new policy in South Korea that customers need the brand’s permission to buy from the store. Dare to implement this in China (credit: google)

  • According to British records, the Wertheimer family’s Cayman Islands-based holding company for Chanel received two $2.5 billion dividends in 2021.
  • According to the Bloomberg Billionaires Index, the Wertheimers’ net worth has increased 37% this year to US$90 billion.
  • Alain, 73, and Gérard, 71, hold equal interests in the closed company.

Last year, the family behind Chanel received a US$5 billion windfall as global demand for its high-end products pushed one of the world’s greatest multi-generational fortunes to new heights.

According to UK records, the Cayman Islands-based Wertheimer family holding company for Chanel received two US$2.5 billion dividends in 2021. It is the No. 5 perfume supplier and largest annual payout to small black dresses since it started publishing its financial statements.

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Wertheimers’ net worth has risen 37% this year to $90 billion, according to the Bloomberg Billionaires Index, as price hikes pushed the luxury goods provider closer to pre-pandemic profit levels in 2021. Alain, 73, and Gérard, 71, are expected to hold equal interests in the closely held company.

The Chanel spokeswoman declined to comment further, referring to the company’s 2021 results.

Over the past two years, global demand for Chanel branded products has increased, and so have their prices. Her classic small flap bag sold for $8,200 in December, up 60% from November 2019, while customers at her Paris boutique could only buy one bag at a time, with a two-month wait before buying another. At 5 a.m., shoppers in Seoul lined up outside a Chanel boutique for a chance to win a $9,500 wallet.

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According to data from Bloomberg, the most recently revealed payout represents more than half of the roughly US$8 billion Chanel has paid out in total dividends since the start of 2016.

The bargains allowed the brothers to expand their fortunes beyond high-end products.