It’s official: Sephora leaves Russia

After “Temporarily closed” its Russian stores in early March following Russia’s invasion of Ukraine, Sephora makes a historic decision and sells 88 stores in the territory to its local general manager. The latter will resume the activity under the name “Beauty of the island”One brand acquired by Sephora when it entered Russia.

The giant of cosmetics belonging to the LVMH group explains of his assignment contract in a press release published on 11 July, “the signing of an agreement for the transfer of 100% of the shares of its subsidiary in Russia to the local general manager, aimed at promoting continuity for employees”. The number of the latter amounts to 1200.

Regarding the amount of this transaction, was not disclosed by LVMH nor by the buyer, but we already know that it is subject “for the approval of the competent (local) authorities, in particular the competition authorities”.

Russia accounts for 3% of the brand’s sales

LVMH recorded sales of 64 billion euros in 2021. The brand, on the other hand, does not communicate on the figures of its various brands. But analysts believe it Sephora’s sales still represent 8 billion euros. 3% of this figure is carried out on Russian territory. 3% doesn’t seem like much, but it represents a nice sum of up to billions.

And if brands officially announce they are putting European sanctions in place to promote peace, it could be more a matter of reputation causing loss of profits… As always when it comes to large groups.

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