{"id":467351,"date":"2026-06-08T20:53:11","date_gmt":"2026-06-08T20:53:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/467351\/"},"modified":"2026-06-08T20:53:11","modified_gmt":"2026-06-08T20:53:11","slug":"sephora-nz-posts-fifth-straight-loss-as-mecca-grows-nz-beauty-sales","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/467351\/","title":{"rendered":"Sephora NZ posts fifth straight loss as Mecca grows NZ beauty sales"},"content":{"rendered":"<p class=\"DjAaGJVL\" style=\"display:none\">The Sylvia Park and Newmarket stores also reported an impairment loss of $86,308 relating to their intangible assets.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">A further $49,333 impairment was recognised against all stores, excluding new stores and newly refurbished stores, against their leases.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Overall, Sephora New Zealand reported a net loss of $5.3m for 2025, worse than its $3.4m loss in 2024.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">It\u2019s the fifth recorded financial loss for the New Zealand business, according to available financial statements published by the New Zealand Companies Office.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Since 2021, Sephora New Zealand has total accumulated losses of $27.9m.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">As a result of its performance, the business has continued to borrow from a related party, LVMH Finance Belgique.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">In 2021, the New Zealand business\u2019 related party borrowings totalled $13.7m. In 2025, this has risen to $29.8m.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Sephora is ultimately owned by LVMH Moet Hennessy Louis Vuitton.<\/p>\n<p>One-sided battle<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Mecca New Zealand, meanwhile, has continued to grow sales, with its revenue rising by 4.5% from $159.3m to $166.6m.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Expenses for the business lifted across the board, with the cost of sales rising from $79.9m in 2024 to $84.4m in 2025 and marketing expenses lifting from $3.6m to $4.6m.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Mecca New Zealand did benefit from a lower tax burden, with its income tax expense falling from $2m to $1m year-on-year.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">However, Mecca New Zealand\u2018s net profit fell by 9.7% from $4.9m in 2024 to $4.4m for 2025.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Looking at the same timeframe compared with Sephora, Mecca New Zealand\u2019s revenue has continued to grow and is now more than $75m higher than in 2021.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">The company has also accumulated total profits of $26.9m between 2021 and 2025.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Mecca New Zealand is ultimately owned by Australian retailer Mecca Brands Pty.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Sephora, meanwhile, has seen its revenue decline over the past two years, and is now just $5.1m higher than 2021.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Sephora New Zealand and Mecca New Zealand have been approached for comment.<\/p>\n<p class=\"DjAaGJVL\" style=\"display:none\">Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n<p>Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our <a href=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\">Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"The Sylvia Park and Newmarket stores also reported an impairment loss of $86,308 relating to their intangible assets.&hellip;\n","protected":false},"author":2,"featured_media":467352,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[806,1244,4463,138,49063,67552,15293,55893,1644,17240,9978,16774,2225,134845,111,139,69,18935,15267,667,179330,10811,80],"class_list":["post-467351","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-as","tag-beauty","tag-brand","tag-business","tag-companys","tag-competitors","tag-continued","tag-fifth","tag-financial","tag-grow","tag-grows","tag-larger","tag-loss","tag-mecca","tag-new-zealand","tag-newzealand","tag-nz","tag-posts","tag-reported","tag-sales","tag-sephora","tag-straight","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/467351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=467351"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/467351\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/467352"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=467351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=467351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=467351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}