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Consumption is weaker in Europe, Taiwan and Korea and China isnt as buoyant as it was two years ago, PPR Chief Financial Officer Jean-Marc Duplaix said in April after its Gucci brand reported its slowest sales growth since 2009, excluding currency swings. Yet Sephora and DFS keep growing. New stores in Shanghai and Hong Kong fueled a 17 percent gain in first-quarter comparable sales at the Selective Retailing division as the regions nascent middle class splurged on goods like Bobby Brown cosmetics and Johnnie Walker whisky. LVMH declined to make executives available to discuss the business. Wide Appeal Providing a broad range of skincare and fragrances has been key to Sephoras success since it was founded in 1969. Acquired by LVMH in 1997, it has become the worlds biggest beauty retailer, with about 1,300 shops in 27 countries. Sephora plans to open about 120 stores a year through 2017, Sanford Bernstein estimates. Theres no multibrand competitor that covers as many regions as Sephora, and rivals such as Ulta in the U.S.
LVMH Lipstick Growing Bigger Than Bags as Vuitton Slows: Retail
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