Kohl’s Q3 2024 financial report revealed a significant boost in beauty sales, largely driven by the ongoing success of its Sephora store-in-store initiative. This partnership spurred a remarkable 15% year-over-year growth in beauty sales, making it one of the few bright spots amid the retailer’s broader struggles. Tom Kingsbury, Kohl’s outgoing CEO, pointed out that comparable beauty sales had risen by 9%, a notable acceleration compared to the previous quarter. Categories such as fragrance, bath and body, and skincare—especially brands like YSL, Laneige, and Sephora Collection—performed particularly well.
Kingsbury expressed confidence in Sephora’s continued growth, noting that the retailer’s expanded holiday assortment and increased cross-shopping opportunities were expected to further drive sales. By the upcoming holiday season, Sephora will be featured in more than 1,050 Kohl’s stores, marking a 15% increase in locations compared to last year. These efforts aim to build on the success of the previous year’s holiday season and enhance Sephora’s appeal to a wider customer base.
Despite these successes, Sephora’s store-in-store model has not come without its challenges. Kohl’s fine jewelry business has been impacted by the placement of Sephora’s shops, creating what Kingsbury described as a “persistent headwind” to sales in that category. However, despite this setback, the Sephora partnership remains a vital growth driver for Kohl’s as it navigates a competitive retail environment.
Globally, Sephora’s performance has been similarly strong. Its parent company, LVMH, reported a 1% reported growth and 6% organic growth in selective retail sales, totaling €12,559 million for the first nine months of 2024. Sephora was praised for its “remarkable performance” and market share gains, particularly in key regions such as the United States, France, Italy, the Middle East, and Latin America.
With its strong sales performance and strategic expansion, Sephora continues to be a major player in both the beauty and retail industries, driving growth for Kohl’s and LVMH alike.
