LVMH says Sephora sales are slowing down in the U.S. because Amazon is ‘very aggressive’ in lowering prices ‘and we try to avoid this technique’

• LVMH CFO Cécile Cabanis, in the course of the firm’s Q1 2025 earnings name, mentioned Amazon’s presence is hitting Sephora’s momentum on-line due to its “aggressive” pricing technique. LVMH reported income of $23.1 billion for the primary three months of the 12 months, down 3% in comparison with the identical interval final 12 months.

LVMH reported its first-quarter earnings of 2025 Monday, and Sephora was a notable weak level for the posh conglomerate’s U.S. presence—despite the fact that the style model is performing effectively globally.

Whereas U.S. demand for jewellery, leather-based, and vogue “remained effectively oriented and accelerated modestly” in comparison with the again half of 2024, “Sephora alternatively confronted very difficult comps after going double-digit final 12 months and this defined the sequential deceleration of the U.S. market at group degree,” Cecile Cabanis, LVMH’s chief monetary officer, mentioned on the decision.

Sephora, general, had a reasonably good first quarter with stable brick-and-mortar progress and product gross sales. However Sephora is experiencing “a bit much less momentum on the subject of e-commerce” in the USA particularly, “as a result of Amazon is being very aggressive and being aggressive is usually concerning value, and we attempt to keep away from this method.”

LVMH didn’t instantly return Fortune’s request for remark.

For related merchandise, it seems that Amazon can match Sephora, if not beat it outright, in pricing. For Kérastase’s Gloss Absolu hair product, for example, Sephora sells the 1.52-ounce bottle for $36; on Amazon, that very same product is $26—a reduction of roughly 28%.

Goldman Sachs’ Louise Singlehurst requested Cabanis on the decision in regards to the current “interval of unprecedented headlines,” and positive sufficient, LVMH’s finance boss did admit that uncertainty out there seems to be having “some impression” on demand. 

“It’s true that operational clientele is far more susceptible in much less constructive financial cycles and uncertainties, and it may need had some impression in current weeks,” Cabanis mentioned.

LVMH’s general income fell 3% within the first quarter, however the firm mentioned it’s happy with how the corporate “continues to display resilience” throughout turbulent occasions.

This story was initially featured on Fortune.com