LVMH's record-breaking results driven by Sephora

LVMH has reported record-breaking sales in 2022 due to a “remarkable” performance from Sephora.

The luxury beauty and fashion conglomerate reported a 23% increase in revenues to €79.2bn and profits to €21.1bn.

Sephora’s performance was highlighted for the company's Selective Retailing category, which saw revenues increase by 26% during the year.

LVMH said it will continue to invest in the cosmetic  retailer's omnichannel strategy to keep up momentum and improve its customers’ purchasing experience.

Luxury travel retailer DFS saw mixed results due to the ongoing Covid-19 restrictions in China.

Its flagship destinations of Hong Kong and Macau were particularly affected due to the suspension of domestic travel and a reduction in tourism.

It comes after Cosmetics Business revealed Westfields’ west London shopping centre to be the home of Sephora’s debut UK bricks-and-mortar store.

The outlet will be located on the same stretch of the complex housing beauty retailers L’Occitane, Space NK and Boots.

Products from Danessa Myricks and Kosas will also feature in the UK for the very first time.

“Our performance in 2022 illustrates the exceptional appeal of our Maisons and their ability to create desire during a year affected by economic and geopolitical challenges,” said Bernard Arnault, CEO of LVMH, who was recently named the world's richest man.

“Our growth strategy, based on the complementary nature of our activities, as well as their geographic diversity, encourages innovation and the quality of our creations, the excellence of their distribution, and adds a cultural and historical dimension thanks to the heritage of our maisons.”

Sales in Europe, the United States and Japan rose sharply in 2022, benefiting from the recovery of international travel.

Perfumes and cosmetics were also highlighted as key performers during the period, with revenue rising by 17%.

This was boosted by a strong performance from Christian Dior, which benefited from increased sales of Sauvage, Miss Dior and J’adore.

Profit from recurring operations decreased slightly, however, as a result of a selective policy for product distribution.

Despite this, Fenty Beauty doubled its revenue thanks to the expansion of its distribution network and the success of new launches.

“We approach 2023 with confidence but remain vigilant due to current uncertainties,” added Arnault.

“We count on the desirability of our Maisons and the agility of our teams to further strengthen our lead in the global luxury market and support France’s prestige throughout the world.”

Arnault’s daughter Delphine was recently appointed as the brand’s new CEO.

She previously worked as Executive Vice President of Louis Vuitton, and was in charge of supervising all of the fashion label’s product-related activities.