LVMH’s Sephora shows “exceptional” performance with robust momentum from Perfumes & Cosmetics
26 Jul 2023 --- In its half-year performance, LVMH (Moët Hennessy Louis Vuitton) has achieved a revenue of €42.2 billion (US$46.7 billion), up 15% from the first half of 2022. In the same period this year, its Perfumes & Cosmetics group experienced an organic revenue growth of 13% “thanks to strong momentum achieved through innovation, combined with a highly selective distribution policy.”
In addition, all business groups achieved double-digit organic revenue growth, except for Wines & Spirits. “In the second quarter, organic revenue growth was 17%, in line with trends seen in the first quarter,” shares the company.
“LVMH achieved outstanding results during six months of ongoing economic and geopolitical uncertainty. We continued to see progress relating to our environmental, social and societal commitments, most notably in the recent announcement of an ambitious water sobriety plan intended to reduce our overall water consumption footprint by 30% by 2030,” says Bernard Arnault, chairman and CEO at LVMH.
“Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism. We aim to remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.”
Cosmetic sees stable growth
LVMH shares that its perfume, makeup and skin care saw continued growth. Leading the perfumes category is Christian Dior, which is highlighted for its “remarkable performance.”
Christian Dior is highlighted for its “remarkable performance,” making it a leader in the market.
“Sauvage confirmed its position as the world’s leading perfume, while the iconic women’s fragrances J’adore and Miss Dior saw continued success,” shares LVMH.
“Makeup also contributed to the strong results from the Maison, particularly Dior Addict Lip Maximizer and Forever Skin Correct foundation.”
Skin care was noted to have an “excellent” performance, especially its Prestige range in Asia’s premium market. Guerlain’s growth was driven by Abeille Royale skin care and its l’Art et la Matière perfume collection.
“Givenchy benefited from the excellent reception of its new fragrance Gentleman Society. Benefit successfully expanded The Porefessional skin care range, while Fenty Beauty’s latest creation, Hella Thicc mascara, is already one of the Maison’s bestsellers,” says LVMH.
Sephora leads in selective retailing
With the recovery of international travel and retail stores opening, LVMH has had a positive experience.
With the recovery of international travel and retail stores opening, LVMH has had a positive experience.
In this year’s first half, organic revenue growth was 26%, and profit from recurring operations was up 100%.
“Sephora performed exceptionally well and continued to gain market share thanks to its distinct and innovative product and service offering,” shares the company.
“Momentum was particularly strong in North America, Europe and the Middle East. Its distribution network continued to expand, particularly in the UK where its first store opening proved a huge success.”
Recovery in travel, especially due to tourists’ return to Hong Kong and Macau, supported digital financial services. In France, La Samaritaine in Paris benefitted from Asian tourists and Le Bon Marché – “which is growing strongly” – developed concepts that provided value to French consumers, including tourists.
In the same period last year, LVMH delivered a 34% profit increase. In the first quarter of the year, it reported 17% organic growth and 10% for its Perfumes & Cosmetics business.
Edited by Venya Patel
