Sephora Growth and UK Expansion Boost LVMH First-Half Sales

LVMH recorded revenue of €38.6 billion in the first half of 2026, with sustained growth at Sephora anchoring the luxury group’s performance as the beauty retailer accelerates its brick-and-mortar expansion in the UK.

Despite a challenging geopolitical and economic landscape, further complicated by ongoing conflicts in the Middle East, the luxury conglomerate described its overall performance as highly resilient. Growth picked up in the second quarter, with LVMH reporting 3% organic revenue growth, which rises to 4% when excluding the direct impact of Middle Eastern market disruptions.

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

Within LVMH's Selective Retailing division, organic revenue climbed 5% in the first half of 2026, accompanied by steady margin improvements. Sephora led the division with robust organic revenue growth and continued market share gains across multiple regions.

The beauty retailer has continued to diversify its brand portfolio with high-profile exclusive launches. Notably, Hailey Bieber's skincare brand, Rhode, delivered exceptionally strong sales in both North America and the UK. This focus on hot indie brands reflects a broader industry shift where retailers leverage exclusive partnerships to capture younger demographics.

Sephora’s physical expansion in the UK is also gathering momentum with the debut of its first boutique-format stores in London. Following the opening of its Carnaby Street boutique last week, a second location at Old Spitalfields Market is set to open on July 30. This aggressive retail push coincides with a dynamic period for British retail, highlighted by Korean retailer Oseyo's massive UK flagship expansion and Revolution Beauty's recent turnaround efforts in the local market.

In contrast to Sephora's retail success, LVMH’s Perfumes & Cosmetics manufacturing business group saw flat revenue during the first half of the year, despite maintaining a strict focus on product innovation and highly selective distribution.

Elsewhere in the group, the Fashion & Leather Goods division returned to organic growth in the second quarter, while the Watches & Jewelry business posted an 11% organic revenue increase during the same period.

Looking ahead, LVMH acknowledged that while the global economic and geopolitical outlook remains unpredictable, the group will focus on elevating brand desirability. This strategy will center on product quality, creative innovation, and retail excellence.

The group expressed confidence that its commitment to high operational standards and the expertise of its global teams will reinforce its leadership position in the luxury market throughout the remainder of 2026.

"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," said Bernard Arnault, Chairman and CEO of LVMH. "Our highly committed teams will continue to stand out and reinforce LVMH’s leadership position."