Amazon's Aggressive Price Cuts Hurt Sephora's US Sales, Says LVMH CFO Cecile Cabanis: 'We Try To Avoid This Technique'

Amazon.com Inc.‘s AMZN aggressive pricing tactics are putting pressure on Sephora’s e-commerce performance in the U.S., LVMH Moët Hennessy Louis Vuitton LVMHF CFO Cecile Cabanis revealed during the company’s first quarter of 2025 earnings call on Monday.

What Happened: “In the U.S., we have a bit less momentum when it comes to e-commerce, especially because Amazon is being very aggressive and being aggressive is mostly regarding price and we try to avoid this technique,” Cabanis told analysts during the revenue call as LVMH reported disappointing first-quarter results.

The luxury conglomerate missed sales forecasts with a 3% decline in quarterly revenue, falling well below analyst expectations of 2% growth, according to Reuters. The U.S. market saw a 3% sales drop, with Cabanis specifically identifying Sephora as the main driver of the American deceleration.

LVMH’s challenges come amid broader economic uncertainty following President Donald Trump‘s recent tariff announcements. “These days, parameters are changing every hour,” Cabanis noted, highlighting complications in conducting business amid trade tensions.

What Happened: The company’s core fashion and leather goods division, representing nearly half of group sales and over 75% of profits, posted a 5% decline. Meanwhile, sales in Asia excluding Japan tumbled 11%, reflecting continued weakness in China.

Amazon’s e-commerce dominance continues despite these competitive pressures. JPMorgan analyst Doug Anmuth recently projected accelerated U.S. e-commerce growth through 2025, naming Amazon his “Best Idea” despite a slight market share dip to 46.1% in the fourth quarter of 2024.

Needham analyst Laura Martin suggested Amazon uses its e-commerce business as a “loss-leader,” noting the company’s product sales have stagnated while higher-margin services revenue grows four times faster.

Read Next: