The French beauty brand Sephora (LVMH) will sell all of its 88 stores in Russia to its local general manager who will take over the activity under the name “Ile de Beauté”, according to a press release released on Monday.
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Sephora announces “the signing of an agreement for the sale of 100% of the shares of its subsidiary in Russia to its local general manager, aimed at promoting continuity for employees”, according to the press release.
The amount of the transaction, “subject to the approval of the competent (local) authorities, in particular the competition authorities”, is not disclosed.
Sephora stores in Russia, like all of the 124 stores of the LVMH group (Louis Vuitton, Dior, Céline or Moët & Chandon…) in the country, have been “temporarily closed” since the beginning of March following the invasion of Ukraine and European sanctions.
The Sephora brand entered Russia in 2016 by buying the “Ile de Beauté” brand. In 2022, it employed 1,200 people there in 88 stores.
LVMH, which posted a turnover of more than 64 billion euros in 2021, does not communicate on the sales of its brands, but analysts estimate Sephora’s turnover at 8 billion euros. Russia represents less than 3% of the brand’s sales.
