Recently, Shanghai Jahwa (SH.600315) released its 2025 semi-annual report, which includes the latest financial data of its key associate, Sephora China.
Note: In 2005, Sephora, the beauty retail brand under French luxury conglomerate LVMH, formed a joint venture with Shanghai Jahwa to expand into the Chinese market. Currently, Shanghai Jahwa holds a 19% stake in both Sephora (Shanghai) Cosmetics Sales Co., Ltd. and Sephora (Beijing) Cosmetics Sales Co., Ltd. In its financial report, Shanghai Jahwa noted that although its shareholding in these two Sephora China entities is below 20%, it is considered to have significant influence due to board representation in both companies; hence, they are accounted for as associate companies.
According to Shanghai Jahwa’s semi-annual report, in the first half of 2025:
- Sephora (Shanghai) Cosmetics Sales Co., Ltd. recorded revenue of RMB 2.88 billion [approx. USD 395 million], with a net loss of RMB 42.13 million [approx. USD 5.77 million].
- Sephora (Beijing) Cosmetics Sales Co., Ltd. recorded revenue of RMB 564 million [approx. USD 77 million], with a net loss of RMB 78.10 million [approx. USD 10.7 million].
In total, Sephora China achieved revenue of RMB 3.444 billion [approx. USD 472 million] in the first half of 2025, representing a 12.3% decline from RMB 3.925 billion in the same period of 2024.
In terms of profitability, Sephora China posted a total net loss of RMB 120 million [approx. USD 16.5 million] in H1 2025, widening from a net loss of RMB 94 million in the same period last year.
Historical financial data from Shanghai Jahwa indicates that Sephora China’s revenue peaked at RMB 10.876 billion in 2021, after which its performance began to fluctuate and decline. For the full year of 2024, Sephora China recorded revenue of RMB 7.14 billion, down 19% year-on-year, with a full-year net loss of RMB 646 million [approx. USD 88.7 million].
The newly disclosed data shows that the downward trend has continued into the first half of 2025. The semi-annual report did not provide specific explanations for the fluctuation in Sephora’s performance.
However, according to the H1 2025 financial results released by Sephora’s parent company, LVMH, Sephora achieved revenue growth on a global scale. Revenue from LVMH’s Selective Retailing segment—which includes Sephora, DFS, and Le Bon Marché—was flat year-on-year, but saw 2% organic growth. Recurring operating profit from this segment increased by 12% year-on-year to EUR 876 million.
In the report, LVMH stated that despite facing high year-on-year comparables, Sephora continued to deliver revenue growth thanks to its strong strategic execution, further solidifying its global leadership. The brand continued to expand its market share across multiple countries, strengthening customer loyalty through differentiated product offerings and omnichannel innovations.
| Source: Shanghai Jahwa Financial Report
| Image Credit: Sephora Official Website
| Editor: LeZhi
