Sephora growth supports LVMH sales as UK expansion gathers pace

LVMH recorded revenue of €38.6 billion in the first half of 2026, with growth at Sephora continuing to support the group’s performance as the beauty retailer expands its presence in the UK.

The luxury group said it remained “very solid” despite a challenging geopolitical and economic environment, which was further affected by the conflict in the Middle East.

Growth accelerated in the second quarter, with LVMH reporting organic revenue growth of 3% for the period, rising to 4% when excluding the impact of the Middle East conflict.

Profit from recurring operations reached €8.7 billion in the first half of 2026, representing an operating margin of 22.5%.

Within Selective Retailing, organic revenue increased by 5% in the first half of 2026, with margins continuing to improve. Sephora reported sustained organic revenue growth, alongside further market share gains in several countries.

The retailer continued to expand its brand portfolio with exclusive launches, including Rhode, which performed strongly in North America and the UK.

It comes as Sephora’s UK expansion continues with the opening of its first boutique-format stores in London. Its first boutique store opened on Carnaby Street last week, while a second location at Old Spitalfields Market is scheduled to open on 30 July.

Elsewhere, LVMH’s Perfumes & Cosmetics business group maintained its focus on innovation and selective distribution, although revenue remained flat during the first half of the year.

In Fashion & Leather Goods, revenue returned to organic growth in the second quarter, while the Watches & Jewelry business recorded organic revenue growth of 11% in the second quarter.

Looking ahead, LVMH said that while the geopolitical and economic environment remains uncertain, the group will continue to focus on strengthening brand desirability through product quality, creativity and retail excellence.

The group said its commitment to high standards across its activities, combined with the expertise of its teams, will support its ambition to reinforce its global leadership position in luxury goods throughout 2026.

Bernard Arnault, Chairman and CEO of LVMH, said: "While continuing to pay very close attention to margins, we are entering the second half of the year with renewed confidence in the long-term potential of our Maisons and in our highly committed teams to continue to stand out and reinforce LVMH’s leadership position."