Core Viewpoint - LVMH has initiated a strategic optimization process for its beauty division following a leadership change, considering the sale of several underperforming brands, including Fresh and Make Up For Ever, and evaluating a partial divestment of Fenty Beauty [1][2][11]. Group 1: Leadership Changes and Strategic Moves - LVMH announced a leadership change in its beauty division on February 9, with Stéphane Rinderknech stepping down and Véronique Courtois taking over, who has over 20 years of experience with LVMH [2]. - The company is reportedly undergoing a significant strategic restructuring of its beauty division, assessing the sale of multiple brand assets, including Fresh and Make Up For Ever [2][11]. Group 2: Brand Performance and Market Challenges - Fresh, founded in 1991 and acquired by LVMH in 2000, has struggled with profitability and is facing challenges due to changing consumer preferences towards efficacy over brand storytelling [5][8]. - The brand has been in a long-term loss situation within LVMH, which is a key reason for the potential sale consideration [8][9]. - Fresh has a presence in over 25 countries but has not achieved significant market penetration in China, where it has been unable to break into the top tier of foreign beauty brands [8][9]. Group 3: Other Brands Under Review - LVMH is also considering the sale of Make Up For Ever, which has been in a similar situation of long-term losses and has not met growth expectations set by LVMH [11][13]. - Fenty Beauty, co-created with Rihanna, initially saw great success but is now viewed as a non-core asset due to its reliance on Rihanna's personal brand and recent sales challenges [14][16]. - LVMH is seeking a valuation of Fenty Beauty between €1.5 billion and €2.5 billion for a potential sale of its 50% stake [16]. Group 4: Financial Performance and Strategic Focus - LVMH's overall revenue for 2025 was €80.807 billion, reflecting a 5% decline year-on-year, marking a rare instance of negative growth for the company [18]. - The beauty division's revenue for 2025 was €8.174 billion, down 3% from the previous year, with luxury brands like Dior and Givenchy being the main contributors to revenue [18][19]. - LVMH is focusing on core beauty brands that can deliver stable high growth and profitability, indicating a strategic shift towards optimizing its beauty portfolio [20].