- LVMH CFO Cécile Cabanis, in the course of the firm’s Q1 2025 earnings name, stated Amazon’s presence is hitting Sephora’s momentum on-line due to its “aggressive” pricing technique. LVMH reported income of $23.1 billion for the primary three months of the yr, down 3% in comparison with the identical interval final yr.
LVMH reported its first-quarter earnings of 2025 Monday, and Sephora was a notable weak level for the luxurious conglomerate’s U.S. presence—although the style model is performing nicely globally.
Whereas U.S. demand for jewellery, leather-based, and vogue “remained nicely oriented and accelerated modestly” in comparison with the again half of 2024, “Sephora alternatively confronted very difficult comps after going double-digit final yr and this defined the sequential deceleration of the U.S. market at group degree,” Cecile Cabanis, LVMH’s chief monetary officer, stated on the decision.
Sephora, total, had a reasonably good first quarter with strong brick-and-mortar development and product gross sales. However Sephora is experiencing “a bit much less momentum with regards to e-commerce” in america particularly, “as a result of Amazon is being very aggressive and being aggressive is usually relating to worth, and we attempt to keep away from this system.”
LVMH didn’t instantly return Fortune’s request for remark.
For related merchandise, it seems that Amazon can match Sephora, if not beat it outright, in pricing. For Kérastase’s Gloss Absolu hair product, for example, Sephora sells the 1.52-ounce bottle for $36; on Amazon, that very same product is $26—a reduction of roughly 28%.
Goldman Sachs’ Louise Singlehurst requested Cabanis on the decision in regards to the current “interval of unprecedented headlines,” and positive sufficient, LVMH’s finance boss did admit that uncertainty out there seems to be having “some affect” on demand.
“It’s true that operational clientele is far more susceptible in much less optimistic financial cycles and uncertainties, and it might need had some affect in current weeks,” Cabanis stated.
LVMH’s total income fell 3% within the first quarter, however the firm stated it’s happy with how the corporate “continues to show resilience” throughout turbulent occasions.
This story was initially featured on Fortune.com
Source_link
