LVMH Annual Report

LVMH 2018 . S e l e c t i v e R e t a i l i n g

Major s t rateg ic pr ior it ies

Maintain Sephora’s innovative momentum in stores and digital content.

Continue to cultivate a creative, exclusive offering at Le Bon Marché and La Grande Épicerie de Paris. Pursue the expansion of DFS

and develop digital marketing initiatives to get closer to international travelers.

2018 at a glance

Sustained growth at Sephora and rebound of DFS’s profitability Sephora had another year of growth and market share gains. Online sales grew rapidly, especially in North America and Asia. The extension and renovation of its distribution network continued in 2018 with around one hundred new stores opening around the world, including the new Nanjing Road store in Shanghai and the first Sephora-branded stores in Russia. Le Bon Marché accelerated the development of its loyalty program and launched a new children’s department in the last quarter. The online platform, 24 Sèvres, launched a year ago, developed actively. DFS progressed strongly thanks to a particularly good performance in Hong Kong and Macao. The recently opened Gallerias in Cambodia and Italy also grew rapidly. The closure of the loss-making Hong Kong Airport concessions at the end of 2017 contributed to the rebound in profitability. Outlook In 2019, Sephora will continue to design and offer its customers the best omnichannel expe- rience in the beauty world, while maintaining its focus on its core strengths: its dedicated, professional staff; the expansion and renovation of its store network; its rich, innovative range of products and services; and its desire to keep surprising its customers and give them an ever more personalized connection at its stores and throughout its digital ecosystem. DFS enters 2019 with confidence, while remaining vigilant to the key issues inherent in its business segment, such as currency fluctuations and potential changes in the sales envi- ronment. Work is underway to expand and enhance the flagship store on Canton Road in Hong Kong and to renovate the Four Seasons Hotel Macao store. The brand will expand its store network, particularly in Asia, and step up its digital initiatives to better serve travelers. Le Bon Marché will continue to cultivate its uniqueness, its creative and exclusive offerings, and its dual identity as both a trendsetting retail destination and a venue for art and culture. The opening of a VIP lounge will round out the range of perks available to its customers. La Grande Épicerie de Paris will keep working to enhance its appeal and build customer loyalty on both sides of the Seine.

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