LVMH Reports H1 2025: Perfume and Cosmetic Sales Down, Sephora Fuels Selective Retail Expansion

Key Takeaways

LVMH’s perfumes and cosmetics sales declined 1% to 4,082 million euros in H1 2025, with profits down 4% to 425 million euros.
Top performers included Christian Dior fragrances, particularly Sauvage and J’adore, alongside growth in Sephora’s sales and market share.
Despite challenges, LVMH remains optimistic about long-term potential and commitment to quality across its luxury brands.

Sales Performance Overview

LVMH reported a slight decline in its perfumes and cosmetics division for the first half of fiscal 2025, with total sales reaching 4,082 million euros, marking a 1% decrease compared to the previous year. In organic terms, sales were flat. Profits also took a hit, falling by 4% year-over-year down to 425 million euros. Sales reflections indicated a mixed performance across quarters, with Q1 generating 2,178 million euros and Q2 slowing down to 1,904 million euros.

Highlights from Perfumes and Cosmetics

The perfumes and cosmetics sector featured standout products, particularly from the esteemed Christian Dior line. Primarily, the Sauvage fragrance has been recognized as “the world’s best-selling fragrance,” with additional highlights from J’adore Eau de Parfum and Dior Homme. The newly introduced Bois Talisman scent in the La Collection Privée has also drawn attention, alongside notable entries from Make Up Forever and Dior Addicts. Guerlain’s skincare offerings, notably the Aqua Allegoria and the relaunched Abeille Royale serum, complemented the fragrance line well. Parfums Givenchy’s L’Interdit and Maison Francis Kurkdjian’s Kurky further added to the portfolio’s appeal.

Growth in Selective Retailing

Selective retailing, which incorporates Sephora, reported no change in sales at 8,620 million euros, although there was a 2% increase in organic terms. This segment experienced a 12% rise in profit, attributed to Sephora’s global market leadership and success in expanding its customer base. LVMH highlighted Sephora’s strategy in product differentiation and omnichannel innovation as key drivers of its sustained growth.

LVMH’s Strategic Outlook

Bernard Arnault, Chairman and CEO of LVMH, expressed confidence in the company’s resilience amidst market uncertainties. He credited the strength of iconic brands and their capability to innovate while adhering to the principles of craftsmanship. Emphasizing a long-term vision, Arnault indicated that the group is committed to quality and desirability, which will guide its future endeavors. He noted enthusiasm for the upcoming half of the year, calling for vigilance while reinforcing LVMH’s position as a leader in luxury goods. The primary objective remains the delivery of exceptional products to customers.

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