Sephora Australia, owned by luxury group LVMH, booked revenue of $368.9 million in the 12 months to December 31, an increase of just over 9%. The retailer operates 33 stores nationally and carries headline brands including Fenty Beauty, Rare Beauty and Tarte Cosmetics across those locations.
Regulatory filings show the business recorded a $22.5 million loss in the period, up from $13.4 million the previous year. The latest result is the seventh straight year in the red for Sephora’s local operations.
Globally, the Sephora brand usually dominates prestige beauty retail, yet its Australian performance tells a very different story. The company trails a much larger local rival in Mecca, which has built a commanding position in the same market.
Over the same 12 month period, Mecca generated revenue of $1.43 billion and delivered a $126 million profit. It also paid an $87 million dividend to its owners, highlighting the gap in profitability and cash generation between the two competitors.
