Sephora’s profit margin almost doubled on the year in 2014, at 8%, from 4.7% a year before.
Sephora has a 25-store network in Romania, targeting the major local cities with enough purchasing power for a luxury cosmetics store.
LVMH, the most important company on the luxury sector with brands such as Louis Vuitton, Dior, Tag Heuer or Moet & Chardon, became Sephora’s sole stockholder in the spring of 2013.
Previously, Sephora was owned by Greek-held Marinopoulos, one of the most important franchise holders in Romania during the economic boom years of the last decade. The group has no more operations left in the country, following the loss of the Starbucks franchise in 2014.
Sephora’s competitors are international chains Douglas and Marionnaud, as well as the online retailers and small independent businesses.
Romanians are annually spending around EUR100 million on perfumes and luxury cosmetics, according to ZF data, and Sephora is the largest company in this sector by sales.
(English version by Manuela Panescu)