Chanel’s profits plunge 28% as global turbulence threatens the luxury giant’s pricing power

French luxury group Chanel said Tuesday that it suffered a 28.2-percent drop in net profit to $3.4 billion last year because of “challenging” conditions in some markets.

“We saw challenging macroeconomic conditions which had an impact on sales in some markets,” the CEO of the fashion house, Leena Nair, said in a statement. Global revenue dipped 5.3 percent to $18.7 billion.

It said the headwinds raise questions over whether it will raise prices, as it typically does twice a year, in March and in September.