LVMH's Perfumes & Cosmetics division reported zero sales growth for 2025, a flat performance year-on-year. Yet, the division achieved an 8% profit increase, pushing operating margins to 8.9%. This suggests a strategic shift towards efficiency and profitability over aggressive expansion.
Dior was the primary engine for this performance, benefiting from new fragrance releases like Miss Dior Essence and Dior Homme, alongside continued success for Sauvage, the leading men's fragrance globally. Strong innovation in colour cosmetics also bolstered Dior’s results. Other brands contributing included Guerlain, Givenchy, and Maison Francis Kurkdjian.
The company highlighted its "robust innovation policy" and "highly selective retail approach." Notably absent from the commentary were specific details on skincare sales and performance in the APAC region. The Fenty Beauty brand was also not mentioned in the divisional overview.
Meanwhile, the Selective Retailing arm, which encompasses Sephora, reported 4% organic revenue growth. Sephora expanded its global footprint, opening approximately 100 new stores and increasing its market share in numerous countries.
For UK salon and beauty business owners, LVMH's focus on profit margins, even without sales growth, indicates a potential move towards optimising existing operations. The emphasis on selective retail and hero products may signal a direction for smaller businesses aiming to maximise revenue from their most popular services and curated product lines.
