Chanel Ltd. experienced a significant drop in profitability during the previous fiscal year, reflecting the impact of aggressive spending on retail development and heightened marketing outlays. Operating income declined 30% to 4.48 billion USD, while revenue contracted by 4.3% on a comparable basis, according to the latest company release. This performance underscores the headwinds facing the luxury sector, with premium brands responding to shifting demand through strategic investments aimed at maintaining market presence.