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In 2024, Sephora sustained its upward trajectory, delivering another year of strong revenue growth across its retail and intercompany operations. Although the pace of expansion moderated compared with the rebound years of 2022-2023, the company still achieved a solid double-digit sales increase, supported by consistent store performance and expanding order volumes from European subsidiaries. Total revenue surpassed €2,5 billion, underscoring Sephora’s continued strength within LVMH’s selective retailing division and its growing influence in the global prestige beauty market
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The audited annual financial report - released on 6 June 2025 confirms Sephora’s sustained post-pandemic recovery and resilience within LVMH’s selective retailing division. Supported by network optimisation, digital integration, and stronger in-store traffic, Sephora closed the year with record profitability and reinforced its leadership in the global prestige beauty segment.
Financial Performance Overview
Comparative Analysis - Sephora’s Historical Performance
From 2020 through to 2024, Sephora has posted consistent revenue growth each year.
The jump from 2020 to 2021 (+9,35%) marked a modest recovery phase.
The stronger acceleration in 2022 (+22,2%) and 2023 (+20,2%) reflected robust expansion momentum.
In 2024, growth decelerated to +16,4%, indicating a moderation in expansion though still at healthy double-digit levels.
This pattern suggests Sephora has moved from recovery into expansion and now into a more sustainable growth phase - managing high absolute revenue while growth rates normalise.
Comparative Analysis - Industry & Competitors
In assessing Sephora’s performance, it is important to benchmark not only versus its own historical growth but also against key players in the global beauty-retail and prestige-beauty segments.
Key competitors:
Ulta Beauty, Inc. (USA) reported revenue of approximately $11.300 million in 2024.
The Estee Lauder Companies Inc. (global prestige beauty) registered net sales of $15.610 million for the full fiscal year ended 30 June 2024, representing a decline of 2% year-on-year.
L'Oreal SA (as a broader cosmetics & beauty group) reported revenue of around €43.480 million in 2024.
Comparative insights:
Sephora’s revenue growth of ~+16,4% in 2024 (from €2.157,57 million to €2.510,98 million) demonstrates a significantly higher growth rate than the overall prestige beauty peer Estée Lauder, which declined in its latest year.
Ulta Beauty, although larger in absolute terms in the U.S. market, is facing competitive pressure from Sephora’s global roll-out and higher-end positioning. Analysts note Ulta has lost market share in the prestige segment due to Sephora’s expansion and exclusive brand roster.
L'Oreal SA’s size and broad product portfolio serve as a useful benchmark for industry scale. While not a direct store-based retail competitor, its stable revenue base underpins the resilience of major beauty players. Sephora’s double-digit growth outpaces typical market pace, confirming share gain or premium placement.
Nevertheless, Sephora’s moderation in growth (from +20,2% in 2023 to +16,4% in 2024) suggests the competitive environment remains intense - particularly with Ulta targeting global expansion and other players accelerating ecommerce and premiumisation.
Regional & Channel Performance Highlights
Sephora’s 2024 revenue mix reflects a balanced and diversified geographic contribution.
France accounted for €1.657,1 million in total revenue, including €1.580,9 million from merchandise sales and €76,2 million from service activities such as royalties, management fees and logistics billed to subsidiaries.
Export and European Union markets generated €853,9 million, with €683,8 million from merchandise and €170,1 million from services.
The rise in service revenue highlights Sephora’s strengthened role as a central operational hub within LVMH’s selective retailing division, supporting international subsidiaries through brand management, marketing coordination and logistics. This structure not only diversifies income streams beyond direct retail but also enhances group-wide efficiency and scalability across markets.
Key Brand Developments (H1-H2 2024)
Collection Launches & Product Innovation
March 2024: Sephora launched its unified global brand signature “We Belong to Something Beautiful”, rolled out across more than 35 markets to align campaigns and visual identity under a single inclusive message.
January 2024: Refreshed Beauty Insider 2024 birthday gift line-up (Youth To The People, Moroccanoil, and fragrance sets), strengthening loyalty engagement and sampling strategy.
Leadership & Brand Strategy
July 23 2024: In LVMH’s H1 2024 results, the Selective Retailing division (driven by Sephora) recorded +8% organic growth and a rise in profit, confirming Sephora’s market-share gains across North America, Europe and the Middle East.
January 28 2025: In LVMH’s FY 2024 report, Sephora was highlighted for double-digit revenue and profit growth, bolstered by the Kohl’s U.S. partnership and renewed expansion in the U.K.
Major Marketing Campaigns & Community
September 27-28 2024: Hosted SEPHORIA 2024 in Atlanta’s Pullman Yards - a two-day immersive beauty festival with over 50 brand activations and masterclasses, reinforcing community engagement in the U.S.
March-December 2024: Continued activation of the new global brand signature across local markets, ensuring consistent tone and inclusivity in campaign storytelling.
Operational Developments (2024)
Full Year 2024: Sephora pursued network rationalisation in France - opening 4 new stores and closing 2 existing locations to strengthen profitability and elevate experiential retail standards.
October 27 2023 - Full Year 2024: The Champs-Élysées flagship completed its first full operational year post-renovation, achieving +22,5% sales and +15,4% visitor growth versus pre-refit performance.
FY 2024: Strong volume growth to European subsidiaries continued, particularly in Poland, Portugal and Greece, supported by logistics and supply-chain coordination from France.
FY 2024: Sephora implemented digital integration in inventory and fulfilment systems, improving margin control and cost efficiency across cross-border operations.
FY 2024: No impairment was recognised on goodwill or store assets after valuation tests - evidence of strong cash-flow and healthy store performance .
FY 2024: Exceptional items include a €14 million support subsidy to Sephora Korea, recorded as part of a -€17,5 million exceptional result.
Retail Concepts & Openings
FY 2024: Expanded the Sephora at Kohl’s network across the U.S. and re-entered the U.K. market with new flagship stores, leveraging omnichannel integration.
FY 2024: Introduced enhanced “Store of the Future” concepts combining AI-based personalisation, AR try-on tools and in-store digital sampling, reinforcing Sephora’s leadership in beauty retail innovation.
Sustainability & Purpose
June 2025 (release for FY 2024): Sephora published its Global Impact & Progress Report, highlighting advances in responsible sourcing, waste reduction and inclusive community programmes.
FY 2024: Continued progress on sustainable store operations (energy-efficient refits and recycled fixtures) and supply-chain transparency initiatives aligned with LVMH’s LIFE 360 framework.
Global Expansion & Strategic Direction (2025)
June 2025: Sephora entered a multi-year global data-sharing alliance with NielsenIQ, integrating consumer-panel and point-of-sale analytics to enhance personalisation, assortment optimisation and omnichannel growth strategy. This collaboration strengthens data-driven decision-making across Sephora’s 35 global markets.
July-September 2025: LVMH reported that Sephora continued to outperform the broader luxury sector, with strong traffic and higher basket sizes in North America, Europe, Asia and the Middle East. The group cited Sephora as the key driver of its Selective Retailing division’s revenue growth, supported by ongoing global store expansion and higher productivity.
September 2025: The retailer accelerated its U.K. expansion, confirming plans to open 20 stores by end-2026 - ahead of the initial timeline - following strong performance of its London flagship and regional sites. This marks a key pillar in Sephora’s European growth strategy.
October 2025: Sephora unveiled an ambitious global rollout plan to open around 200 new stores annually through 2028. The strategy focuses on exclusive brand partnerships, experiential retail innovation and omnichannel integration to sustain double-digit growth momentum worldwide.
2025 Strategic Priorities:
- Exclusive Product Mix: Approximately 50% of Sephora’s assortment now comprises exclusive or limited-distribution brands, reinforcing differentiation from competitors.
- Omnichannel Innovation: Expansion of AI-based personalisation, AR try-on experiences and loyalty-programme integration for a unified customer journey.
- Sustainability and Local Relevance: Wider adoption of low-impact store materials and localised product curation aligned with LVMH’s LIFE 360 framework.
- Data-Driven Growth: The NielsenIQ partnership underpins real-time forecasting and targeted expansion in high-potential markets.
Conclusion & Future Outlook
Sephora exits 2024 with record profitability and one of the most resilient growth profiles in the global beauty industry. Revenue surpassed €2,5 billion, driven by sustained momentum in Europe and a diversified revenue base combining retail, logistics and intercompany services. Operational discipline, technology integration and selective retailing excellence allowed Sephora to maintain high double-digit growth even as broader luxury demand softened.
The 2025 strategic roadmap positions Sephora for continued leadership across both digital and physical retail. With 200 new store openings planned annually, the company is transitioning from recovery-led growth to structured, data-driven expansion. Its partnership with NielsenIQ adds a layer of analytical precision to category and consumer insights, while the emphasis on exclusive brand collaborations reinforces competitive differentiation in an increasingly crowded prestige beauty segment.
Regionally, Sephora’s acceleration in the United Kingdom and sustained strength in North America and Asia signal an ability to balance mature and emerging-market opportunities. The brand’s Store of the Future concept, combining AI personalisation, AR try-on and real-time inventory synchronisation, continues to define the retail benchmark for experience-driven beauty shopping.
Looking ahead to 2026, Sephora is expected to deliver steady mid-to-high single-digit organic growth, supported by the normalisation of consumer demand and the scaling of its omnichannel ecosystem. Key risks remain macro-economic volatility and competitive intensity, but Sephora’s alignment with LVMH’s LIFE 360 sustainability framework, robust balance sheet and innovation capacity provide a strong foundation for long-term value creation.
In sum, Sephora’s 2024-2025 cycle marks a strategic inflection point: from profitable expansion to intelligent global leadership - reaffirming its position as LVMH’s most dynamic growth engine within Selective Retailing and the world’s foremost prestige beauty retailer.
Cover Image: Sephora Facebook Page.
Read the full Sephora Brand report Here.
For a deeper dive into the financial performance of other top luxury brands, explore the
Sephora 2023 Financial Report here
The Estee Lauder Companies Inc. vs L'Oreal SA vs Shiseido Company, Limited Financials here, and
The Estee Lauder Companies Inc. 2024 Financial Report here.
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