- LVMH CFO Cécile Cabanis, throughout 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—regardless that the style model is performing effectively globally.
Whereas U.S. demand for jewellery, leather-based, and style “remained well oriented and accelerated modestly” in comparison with the again half of 2024, “Sephora on the other hand faced very challenging comps after going double-digit last year and this explained the sequential deceleration of the U.S. market at group level,” Cecile Cabanis, LVMH’s chief monetary officer, stated on the decision.
Sephora, total, had a reasonably good first quarter with stable brick-and-mortar development and product gross sales. However Sephora is experiencing “a bit less momentum when it comes to e-commerce” in the US particularly, “as a result of Amazon is being very aggressive and being aggressive is generally concerning value, 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, as an 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 concerning the current “period of unprecedented headlines,” and positive sufficient, LVMH’s finance boss did admit that uncertainty available in the market seems to be having “some impact” on demand.
“It’s true that operational clientele is way more vulnerable in less positive economic cycles and uncertainties, and it might have had some impact in recent 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 demonstrate resilience” throughout turbulent instances.
This story was initially featured on Fortune.com
