LVMH has flagged a “remarkable” year for Sephora in 2025, with the beauty retailer emerging as one of the luxury group’s strongest performers despite a challenging global backdrop. As geopolitical tensions, economic uncertainty, and currency pressures weighed on the wider business, beauty continued to deliver.
Sephora recorded growth in both revenue and profit, with organic sales in LVMH’s selective retailing division rising 4% to €18.35bn. Profit from recurring operations jumped 28%, operating margins improved to 9.7%, and around 100 new stores opened worldwide as the retailer gained market share across key regions.
Momentum was driven by headline-grabbing launches and strong consumer demand. Hailey Bieber’s Rhode made a record-breaking retail debut at Sephora, surpassing US$ 10M in US sales within two days. Fragrance launches from Dior, Guerlain, and Givenchy also performed strongly, underlining the continued pull of beauty innovation even as shoppers became more cautious elsewhere.
That strength helped beauty stand out across the group. LVMH’s perfumes and cosmetics division generated €8.18bn in revenue in 2025, flat on an organic basis, supported by products such as Miss Dior Essence, Dior Homme and Guerlain’s expanded Aqua Allegoria and L’Art & La Matière collections.
Elsewhere, results were more mixed. LVMH posted total revenue of €80.8bn for the year, down 1% organically, with profits pressured by currency movements and weaker demand in Europe, particularly in wine and spirits. The US remained a growth engine thanks to solid local demand, while Asia returned to growth in the second half, easing concerns around China.
Chairman and CEO Bernard Arnault pointed to long-term investment as a key stabiliser, highlighting major retail and cultural projects including The Louis in Shanghai, new House of Dior stores, and revamped Tiffany & Co locations in Milan and Tokyo.
Markets reacted cautiously, with LVMH shares falling as much as 7% following the results. Analysts pointed to ongoing volatility but said strong performances in beauty and selective retailing helped offset pressure in other divisions.
Looking ahead, Arnault warned that 2026 remains uncertain, but said disciplined cost control, continued innovation, and sustainability efforts would be critical. For now, Sephora’s performance sends a clear message: even in a softer luxury market, beauty is still pulling its weight.
