Cosmetics are proving resilient to the rise in the cost of living and Sephora is among those cashing in on this resilience.
The Greek subsidiary of the LVMH group closed the previous fiscal year with sales of 115.23 million euros, up from 98.7 million euros, recording an increase of 16.7% due to tourism and domestic consumption. An upward trend that continues this year as well. In the first half, sales exceeded 53.9 million euros, marking an increase of 11.7%.
Gross profit strengthened last year to 64.27 million euros, pre-tax profits came to 15.153 million euros and net profits reached 11.508 million euros, up from 10.316 million euros. That is, for every 100 euros in sales, more than 11 euros ended up on the bottom line of the balance sheet. In fact, the board of directors proposed the distribution of a dividend of 11.508 million euros.
Growth, however, did not come without cost. The cost of goods sold increased, as did operating expenses, in a year during which the company continued to invest in its network, which numbers 31 stores, and in its staff.
The average number of employees came to 440 people, compared with 408, while total personnel costs exceeded 12 million euros. Inventories increased, due to the opening of a new store, to 19.79 million euros from 16.47 million euros.
Behind the performance of both last year and this year is a market that continues to grow — i.e. the total market exceeded 1.4 billion euros last year with sales growth ranging from 4-7% — but also a change in the way consumers shop.