LVMH has revealed its “excellent” second quarter results for 2023, driven by retailer Sephora following record-breaking sales in 2022.
The luxury goods conglomerate posted total revenue of €42bn in Q2 2023, a 15% increase on the same period in 2022.
Sephora was the star player in the company’s selective retail division, which saw revenue increase 26% to total €8.3bn
The beauty retailer saw an “exceptional” performance in the quarter, according to the company, said to be particularly strong in North America, Europe and the Middle East.
This was buoyed by the company’s first store opening in the UK this March, which was hailed as a “huge success”.
Sephora is set to open a second UK location in London’s Westfield Stratford City shopping mall, set to open its doors this November.
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LVMH’s Perfumes & Cosmetics division – which includes the likes of Benefit, Acqua di Parma and Marc Jacobs Beauty – also saw “rapid growth” with a 13% increase in revenue to €4bn, which the group attributed to innovation combined with a selective distribution policy.
Christian Dior was said to achieve a “remarkable” performance, driven by its best selling Sauvage men’s fragrance, which secured Johnny Depp as its face in a reported US$20m deal this May.
The luxury brand also benefited from new make-up launches including its Dior Addict Lip Maximizer and Forever Skin Correct foundation.
Rihanna’s Fenty Beauty was also a strong driver of cosmetics sales, with the brand’s Hella Thicc Mascara said to be among LVMH's bestsellers since its launch in March.
Guerlain and Givenchy also saw an uptick in growth, according to LVMH, thanks to their l’Art et la Matière and Gentleman Society fragrance launches respectively.
“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty,” said Bernard Arnault, CEO of LVMH, who highlighted the group’s “strong creative momentum and excellent distribution”.
“Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will 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.”