Sephora's UK Rollout Offers LVMH a Bright Spot as Bernstein Flags Louis Vuitton Softness

Sephora plans a shop-in-shop rollout across 100 UK sites with M&S as LVMH shares sit 1% above their 52-week low ahead of quarterly figures.

LVMH is pushing its beauty retail arm deeper into Britain while analysts grow more cautious about the group's flagship fashion label. Sephora, the cosmetics chain owned by the French luxury conglomerate, is teaming up with Marks & Spencer to sell its products both in M&S stores and through the British retailer's website, according to media reports. The plan hinges on a shop-in-shop format that would be extended across 100 UK high streets and retail parks.

For the Paris-based group, the tie-up amounts to a deliberate strengthening of its distribution footprint in a key European market. With its core fashion and leather goods business facing headwinds, LVMH is leaning on additional sales channels in its selective cosmetics division and on closer links with established local retail partners.

Such strategic moves are drawing attention ahead of a major corporate date. Market participants are waiting on the group's quarterly figures, with the operating backdrop for the sector having stayed difficult of late. LVMH has cited persistent demand weakness in China and a potential growth dip at its core Louis Vuitton brand. Barclays likewise pointed to a slowdown in Chinese appetite for luxury goods and a lack of acceleration in other sales regions.

Shares Sit Just Above Their 52-Week Low

Those pressures are visible in the market. LVMH stock closed Friday at EUR 381.20, down 0.4% on the day and off 40% since the start of the year. At that level, the shares trade just 1.0% above their 52-week low.

Beyond the upcoming quarterly release, October brings further dates. From 16 to 18 October 2026, the group will hold its public open days, known as the Journées Particulières, when 45 Maisons open selected sites to visitors across 65 locations in eleven countries. LVMH also reported to the French market regulator AMF on 29 September the completion of transactions in its own shares carried out between 21 and 25 September.

Skepticism Builds on the Analyst Side

Caution toward the sector leader has picked up noticeably among analysts. Bernstein tied its downgrade to the ongoing consumer slump in China and warned of a temporary soft patch at Louis Vuitton. Geopolitical tensions are clouding sentiment in the sector as well: according to a Reuters report, the Middle East conflict is weighing on the business environment for European fashion houses. The reticence of customers in Asia and macroeconomic uncertainty are leaving clear marks on the models of industry watchers. The group's task now is to defend the cachet of its luxury goods despite weaker buying appetite and to align its cost structure with slower market growth.

Management Moves and Supply-Chain Initiatives

Even as the market poses challenges, the leadership is making operational adjustments. Vincent Billiard will take over as COO of Cheval Blanc at LVMH Hotel Management on 5 October and will join the executive committee. Media reports also said the group had recently weighed tying deputy CEO Stéphane Bianchi to the company long term through a changed leadership status, though no corresponding resolution was passed.

Alongside personnel steps, LVMH is backing programs to shore up its supplier network. In September, together with the public investment bank Bpifrance, the group launched a partnership under the "LIFE 360 Business Partners" program. The effort is designed to help small and mid-sized French suppliers adapt to climate change. The company also filed reports with the French financial regulator AMF on transactions in its own shares executed on the market during September.