CERNOBBIO, Italy — Ah, the power of storytelling.

Take a storied luxury hotel overlooking Lake Como — the Villa d‘Este; a garden in full bloom; a glorious sunny day, and connect the location with a revered movie director, Luchino Visconti, whose Villa Erba home stood nearby, and the unforgettable Romy Schneider wearing Gabrielle Chanel designs in his 1962 movie “Boccaccio 70” and voilà, it’s the perfect scenario for the Chanel cruise 2026 fashion show.

Enthusing about the location, Bruno Pavlovsky, president of fashion and president of Chanel SAS, said Villa d’Este connects the dots between Chanel and the cinema world — and Sofia Coppola celebrated the show with a film set in the exclusive hotel. He was clearly pleased about securing the venue — “no easy feat,” he admitted, as it is home to prestigious events throughout the year — and underscored that Villa d’Este is also an inspiration for the studio team.

“It helps our storytelling, and the attraction of the location, the fantasy are always quite important,” Pavlovsky said ahead of the two shows held Tuesday.

Originally a 16th-century building, Villa d’Este became a hotel in 1873 and is surrounded by a beautiful park covering 25 acres. Over the years the likes of Elizabeth Taylor, Robert De Niro and Al Pacino, not to mention numerous members of the aristocracy, sultans and top politicians, have been drawn to the unique destination.

Chanel is in a transition phase as creative director Matthieu Blazy, who joined in April, will present his first collection for the brand in October, and the glamorous location was indeed an influence for the design team. Don’t expect a guest at Villa d’Este to wear thong sandals or pareos as she ambles down to the pool. You can just imagine her milling around the hall in a white sequined belted robe or flared below-the-knee pants and embroidered bib shirt. She will surely change for dinner into a cinematic chiffon halter-top gown with elbow-length silk gloves. A Chanel 25 bag will always be at hand, and she will wear patent high-heeled mules and sandals even on the gravel walkway. At the noon show, a smiling Keira Knightley in a floor-length white silk fall 2025 look embellished with macro bows was the embodiment of this woman.

However, there was plenty Chanel also offered its Gen Z customers — tweed miniskirts in a beautiful wisteria hue that matched the blooms on the terrace, for example, and short taffeta dresses in a peach or pink color with flounces and ruffles — although at times the frilly effect could have been toned down a bit. A gold Lurex damask trouser suit added a subtle disco vibe. The lake sparkling below was in sync with the mariniere palazzo pants and polo shirts.

The team did not ignore the key signature Chanel elements, so it was familiar — and safe — territory. To be sure they were all there — the tweed, the camellias, the jewelry and strings of pearls — and the designers paid tribute to the brand’s artisans, with precious embroideries with beads and rhinestones, lacework inspired by the magnolias, rhododendrons and oleanders in the park, and sequin embellishments. But Pavlovsky acknowledged the moment of transition ahead of Blazy’s “new creative energy, which is super interesting for the team.”

While staying true to the brand’s strategy is key, “first and foremost, for us it’s more about creation,” he continued. “Everything is working well, but it takes time. Chanel is quite a big and complex brand, and I’m super optimistic for the end result.”

Blazy did not attend the shows “but the team is already working with him on the new collection, so there is continuation.”

Chanel has not reported its yearend financial figures yet, but Pavlovsky said he did “not forecast any unexpected changes. As for the rest of the industry, the difficulties were seen mostly in Asia and China. The business in China has been quite difficult in 2024 but now it’s picking up, and we feel a strong, nice energy.” In January, the executive said 2024 revenues would be flat versus 2023.

“We see ups and downs all the time, and that’s part of our job. After COVID-19, we had these incredible bubbles with a kind of steady growth for two, three years. But it’s not real life; now we are back to real life with ups and downs, and the ones who are investing in the right direction will probably perform.”

Asked about President Trump’s tariffs, he said Chanel is taking a wait-and-see approach. “As you know, everything has been postponed for three months, so we have a few weeks in front of us to make a final decision. We are the only luxury brand to be price-harmonized,” he claimed, “and that’s something which is super important, because it’s a strong sign that we give to our clients, and even more important, when there is this kind of situation with tariffs or fluctuation in the currencies, so we are looking at that very carefully.”

He does not believe that the Chanel customer is insulated from these concerns.

“We have many international clients who are coming from the States to Europe, and we have seen, with the new situation, a slowdown. I think everyone is concerned by this kind of situation, and we cannot say today what will be the real impact, but when you try to slow down international commerce, it’s not a good sign,” said Pavlovksy. “When the first economy in the world is suffering, it’s not a good sign for the rest of the world. We have to be very concrete and pragmatic. Let’s see what happens, but if the U.S. is still difficult and challenging from an economic point of view, that will have an impact on our business in the U.S., probably, but also out of the U.S.”

Asked about the changing landscape of department stores in the U.S., he said Chanel’s relationship with the main ones has been “loyal and long-lasting.” He believes the impact of the changes affects more the fragrance and beauty categories.

“In general, our size of business with them is quite big, and the way to work with them has evolved year after year. We want to keep their vision of distribution, because the experience that we are offering in our boutiques is always a bit different from the one they offer.”

Also, department stores help to offer Chanel in the cities where the company does not necessarily want to open monobrand boutiques, he added.

Chanel is taking a “very cautious” approach about expanding its network and is currently focused on the renovation of existing stores. “I think that after 2024 and what happened in China, we have to be quite careful,” said Pavlovsky. “We still have our six to eight tactical openings of new boutiques every year, and quite often, when we renovate, we enlarge the size of the boutique to offer a better client experience for our clients. We are super focused on the improvement of the quality of our network.”

Most recently, a Chanel boutique opened in Fukuoka, Japan.

In Italy, there are eight boutiques, plus three footwear stores and one  seasonal unit in Capri. In October 2023, Chanel opened a “twin” boutique at the corner of Milan’s luxury shopping street Via Montenapoleone and Via Verri, combining for the first time in Italy its fashion collection with its watches and fine jewelry.

Holding its cruise show at Villa d’Este shortly after acquiring a minority stake in Como-based silk specialist Mantero is serendipity.

“It’s a long partnership, we have been working with Mantero for the past 52 years. Sometimes this kind of partnership can go one step further, and we have decided to become a stronger ally for the future with them,” said Pavlovsky.

Globally, Chanel is working with more than 2,000 manufacturers and suppliers from raw materials and components to finished goods. In Italy it has around 20 manufacturers in its ecosystem.

“If we want to continue to lead this industry in the next 20 years, we have to ensure their capability to develop and manufacture our collections. Sometimes this development goes through an investment, but sometimes we cofinance a machine, or we support the training of employees. What is important is to find the right way of supporting this incredible network in the pipeline, which is facing changes today, and it has to fit with each of these companies,” the executive said.

The range of companies is very different, from a big one such as Mantero to a small factory, so “I don’t want to put them all at the same level, but we have to take care of everything because we can’t allow some of these capacities to disappear.” Equally important is that these companies and suppliers are able to work with other brands. “For me, it’s part of their strengths,” he said.

Mantero is 123 years old and has worked with Chanel for 52 years. During a tour of the plant organized by the French company ahead of the shows, members of the family’s fourth generation, Franco and Lucia Mantero, said the archives include 12,000 Chanel products and 3,000 sketches from the brand.

Asked about any potential development after Chanel’s acquisition, Franco Mantero said there had been “no change on a day-by-day basis, but it’s very strategic for the future of Mantero.” In addition, it’s “a positive message for the Como silk district, which is also made up of smaller companies. It gives energy to the system and is a vote of confidence.”

In the spring of 2023, Chanel and Brunello Cucinelli inked a long-term agreement to each have a 24.5 percent stake in Italian cashmere manufacturer Cariaggi.

Pavlovsky said the textile industry “is more challenged and has suffered quite a lot in the past,” and such a deal allowed Chanel to “make sure that we can continue to benefit from the best qualities and the best finishings.”