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Sephora tweens are giving LVMH’s profits a nice glow

January 29, 2024
in Business
Sephora tweens are giving LVMH’s profits a nice glow
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Throngs of young customers surround a Sephora store.

Photo: Dave Benett/Getty Images for Sephora UK (Getty Images)

Everyone’s been talking about the Sephora tweens: Young customers who flock to the beauty store in search of pricey skincare products to rejuvenate faces too young to register the wear and tear of life. Some people are scared of them. Some are scared for them. Some would like to remind horrified onlookers that they used to be them. But whatever the case, they contributed to record revenues and profits for the makeup-and-skincare retailer.

How to find a new job and make more money | Your Wallet

LVMH, the luxury conglomerate that owns Sephora alongside major fashion brands like Louis Vuitton and Dior, reported earnings Thursday. Good stuff! Revenue in 2023 was up 10% from the year before to 86 billion euros ($93 billion). And although the company never says how much any one of its individual companies are doing financially, it does like to drop in the occasional phrase cluing investors into how things are faring: Louis Vuitton had “another excellent year,” perfume brand Guerlain merely “continued its growth,” and in the watches and jewelry category, where business was flat, Tiffany & Co. “embarked on a new chapter in its 187-year history with the reopening of its legendary New York flagship.”

For “selective retailing,” the department that houses Sephora and duty-free airport mainstay DFS, “strong growth was mainly driven by exceptional momentum at Sephora.” Revenue rose the most of any other section of the empire, up 25% to nearly 18 billion euros. On the earnings call itself, LVMH chairman and CEO Bernard Arnault said that the brand “managed to exceed all our forecasts.”

Last year, a survey of young shoppers from investment bank Piper Sandler found that Sephora had unseated its competitor Ulta as their favorite beauty destination the first time in five years.

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>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Quartz – https://qz.com/sephora-tweens-lvmh-profits-boost-1851198488

Tags: businessSephoratweens
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