According to a recent HSBC report, LVMH Group’s Sephora may no longer fit within the group and could potentially be spun off in the future. Despite Sephora being a leader in the rapidly growing beauty category, its profit margin growth potential is limited as a retailer. HSBC believes LVMH might simplify its corporate structure by spinning off certain businesses in the future, though no assets will be sold in the short term unless they involve heavily loss-making units like DFS. Additionally, HSBC has revised its expectations for Dior, forecasting that its sales in 2025 will remain flat compared to last year, rather than declining by 4% to 5% as previously predicted. The report noted that new products like Dior’s D-Journey handbag have started to reverse the sales decline trend.