Sephora has delivered double-digit growth but LVMH sales and profit take a hit

The luxury retail group, which owns brands including Fenty Beauty and Tiffany & Co, posted total like-for-like sales of €41.6bn (£35bn), down 1% compared to the same time last year.

The group said it was adversely impacted by the weakening of global currencies against the euro, especially the Chinese renminbi and the Japanese yen, as net profit fell 14% to €7.26bn (£6.10bn).

Despite a fall in overall sales, the group’s selective retailing division, which includes cosmetics giant Sephora and Duty Free Shopping, posted a 3% increase in sales to €8.63bn (£7.25bn) underpinned by an “exceptional performance by Sephora, which consolidated its position as world leader in beauty retail”.

Profit from selective retailing came up to €785m (£660m), up 7% compared to the same period last year. 

The group said Sephora continued its “record trajectory with double-digit growth in revenue and profit, confirming the strength of its brand and the relevance and attractiveness of its unique prestige beauty model”.

Looking ahead, the group said “Sephora will continue to reinforce its position in key markets such as Europe, the Middle East and North America” in the second half of the year including investing in the UK market “where it will continue to reinforce its very fast-growing position”.