• Sun. Apr 14th, 2024

Sephora’s CEO Affirms People’s Desire for Luxuries Even During Challenging Times

BySamantha Johnson

Mar 9, 2024
Sephora’s CEO Affirms People’s Desire for Luxuries Even During Challenging Times

In-store sales have been the driving force behind Sephora’s recent growth, contributing to parent company LVMH achieving record-breaking sales in 2023. According to Sephora’s CEO, Guillaume Motte, the company has benefited from the “lipstick effect,” in which customers opt to purchase small luxuries during economic downturns. LVMH’s “selective retailing” division, which includes Sephora, generated 17.9 billion euros in revenue, with profits up 76%.

Sephora’s success can be attributed to the popularity of brands like Drunk Elephant and Fenty Beauty, which have gained viral attention on platforms like TikTok. Despite the increasing presence of Gen Alpha customers at Sephora stores, the company continues to thrive. Both Motte and LVMH CEO Bernard Arnault recognize the importance of in-store sales in driving Sephora’s growth.

The US market is particularly significant for Sephora, with the company achieving $10 billion in revenue in North America alone in 2023. Motte remains optimistic about Sephora’s future, aiming to surpass 20 billion euros in sales in the near future. Arnault credits the company’s growth to the worldwide popularity of Sephora’s store concept.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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