MILAN (Reuters – The luxury French brand Chanel raised the prices on some of its most popular handbags during a season of strong consumer demand, low stock levels and increased exclusivity.

Chanel and its rival LVMH-owned Louis Vuitton are among the most successful brands in luxury retail’s 280-billion euro ($340 billion). They were able to weather the crisis much better than many other retailers, raising prices numerous times to improve their margins.

Chanel’s sales fell 17.6% last year but its core profit margin was around 20% according to analysts. This makes it one the most profitable companies within the sector. In June, it stated that revenues would increase by two-digits this year, compared to their pre-pandemic 2019 levels.

From September to October, Chanel’s Small Classic handbag cost 7.300 euros (or $8.429) more. BFM TV in France first reported the price hike. Reuters confirmed it using the Internet Archive (a repository of old web pages).

On Thursday, Chanel posted the prices for the popular quilted leather 2.55 handbag with a gold chain at 7,800 euros. That’s nearly 30% higher than December 2020’s 6,050 euros.

Group, which is known also for No. 5, said via email that the increase in price “only affects our iconic models: the Timeless Classic, and the 2.55.”

We adjust our prices as with all luxury brands to reflect changes in raw materials prices and production costs as well as fluctuations in exchange rates,” the spokesman stated, although he did not give further details.

According to the spokesperson, price adjustments are not made so that there is no excessive variation between areas.

Chanel’s finance chief told Reuters in June that while the group hadn’t yet raised prices in 2021 but this could change in second-half — as per its international policy of reviewing the prices globally twice a year.

($1 = 0.8660 euros)