Stephen Robert R. Powers

Stephen Robert R. Powers asked about the company's ongoing opportunities to expand into new distribution channels (e.g., Amazon, TikTok Shop, Sephora, Shopify) to keep pace with consumers, and how this strategy varies across regions.

Answer

President and CEO Stéphane de La Faverie affirmed the company's commitment to moving with speed into new channels where brand equity can be built, citing recent expansions into Amazon in multiple countries, TikTok Shop, Shopee, Kakao, and the M.A.C entry into U.S. Sephora. He also highlighted the new partnership with Shopify to modernize direct-to-consumer business and the addition of 40 net new freestanding stores globally, emphasizing the organization's agility and sophisticated media targeting.

Stephen Robert R. Powers acknowledged the company's recent rapid expansion into new channels (Amazon, TikTok Shop, Shopee, Sephora, Shopify partnership) to keep up with consumers. He asked to what extent management believes there are still opportunities to catch up in new channels and how this varies across regions, playing into future planning.

Answer

President and CEO Stéphane de La Faverie affirmed the commitment to moving with speed where consumers are, as long as brand equity is built or preserved. He listed numerous recent channel expansions globally (Amazon in multiple countries, TikTok Shop, Shopee, Kakao, M.A.C in Sephora, Shopify partnership). He emphasized that the new organizational structure with four geographical regions and brand focus allows for faster deployment of innovation and sophisticated media targeting for higher ROI. He stated that the organization is deeply embedded in looking for new channels and going deeper into existing ones, with continued expansion of distribution for luxury brands and new freestanding stores.