The CEO of the fast-growing cosmetics giant Sephora, Guillaume Motte, said that the company was able to show record results during the year thanks to the “lipstick effect” – the desire of consumers, even in times of crisis, to indulge treat yourself to luxury items. , preferably small if the financial situation is unstable.
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Sephora is part of the LVMH holding company (Christian Dior, Louis Vuitton, Givenchy, Guerlain, Moët & Chandon, Hennessy, Chaumet, etc.), which in 2023 achieved record revenues ($10 billion in North America alone) thanks to the growing popularity of the cosmetics brand, Business Insider recalls.
Sephora sells popular brands like Drunk Elephant and Fenty Beauty, which often go viral on TikTok. And even the owner of the entire holding, Bernard Arnault, highlighted in the annual report the relationship between sales growth and the “increasing popularity of the Sephora store concept around the world.”
Revenue from LVMH’s “selective retail” division, which includes Sephora, reached 17.9 billion euros ($19.6). The segment’s profit increased by 76% compared to 2022, which exceeds the growth in fashion, jewelry or watch products.
Mott added that he is optimistic that Sephora’s sales could exceed €20 billion “sooner or later.”
Author:
Ekaterina Alipova
Source: RB
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