Sephora is a bright spot in LVMH 2023 earnings

Sephora’s power within the LVMH portfolio continues to rise.

On Thursday, LVMH shared in its 2023 year-end earnings report that selective retailing, the business unit that houses Sephora, posted a year-over-year revenue increase of 25%, to $19.4 billion, ahead of the luxury conglomerate’s four other units. Behind selective retailing was fashion & luxury goods, with a 14% year-over-year gain, and then perfumes & cosmetics, with an 11% year-over-year gain. The other selective retailers in LVMH’s portfolio are travel retailer DFS and department store Le Bon Marché. Overall, LVMH reported sales of $93.79 billion for 2023, up 13% on an organic basis from the previous year but below the 17% growth the group reported between 2021 and 2022.

LVMH singled out Sephora as having “another record-breaking year for revenue and profit,” though exact figures were not shared. The “exceptional” sales performance was across North America, Europe and the Middle East. Standout moments for Sephora in 2023 included bringing Glossier in-store in February and launching the influencer program Sephora Sounds in August. That was soon followed by updates to its loyalty program in September and the return of the consumer-facing event Sephoria in September.

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