Yesterday, Kohl’s released its financial report of Q3 in 2024 and it released Kohl’ Sephora performance. At Kohl’s, Sephora’s store-in-store initiative spurred an impressive 15% year-over-year growth in Q3 2024 beauty sales, contributing to a rare bright spot amid the retailer’s broader struggles.
Tom Kingsbury, Kohl’s outgoing CEO, highlighted Sephora’s impact on beauty sales, noting a 9% comparable sales increase, a stronger acceleration than in Q2. Categories such as fragrance, bath and body, and skincare—particularly brands like YSL, Laneige, and Sephora Collection—showed robust growth.
Looking ahead, Kingsbury expressed optimism about Sephora’s continued momentum, emphasizing the retailer’s expanded holiday gifting assortment and increased cross-shopping opportunities. By the holiday season, Sephora will be featured in over 1,050 Kohl’s stores, up 15% from last year.
However, Sephora’s success has not been without challenges. Its shop-in-shop model displaced Kohl’s fine jewelry business, creating a “persistent headwind” to sales in that category. Despite this, the Sephora partnership remains a vital growth driver for Kohl’s as it navigates a competitive retail landscape.
Globally, Sephora’s success has been a key driver for its parent company, LVMH, which reported selective retail sales of €12,559 million for the first nine months of 2024. This marked a 1% reported and 6% organic growth year-over-year. The brand was lauded for “remarkable performance” and market share gains in critical markets, including the United States, France, Italy, the Middle East, and Latin America.
