LVMH Sells its Duty-Free Assets in Hong Kong And Macau

LVMH does not disclose DFS's revenue, but includes it in the sales figures for selective distribution, which includes several brands, including Sephora. In 2024, this division's revenue amounted to €18.2 billion, of which €16.4 billion was generated by Sephora.

DFS's sales in 2025 are therefore estimated at around €1 billion, a relatively modest level for the French group. This performance could explain the desire to sell DFS in order to streamline operations and focus resources on the most profitable segments of the portfolio. The group's selective distribution division has been under pressure in recent years, with mixed performance compared to segments such as fashion and leather goods.

CTG Duty-Free is a Chinese state-controlled company and is the largest player in the sector in China, with revenues of around $7.8 billion generated in 2024. Luke Chang, executive director and chairman of CTG Duty-Free, commented in the press release: “This project represents an important step in accelerating the international development of CTG Duty-Free and actively implementing the Greater Bay Area strategy and the ‘China-chic Brands Going Global’ strategy.”

According to the Duty-Free and Travel Retail Global Market Report 2025 published by The Business Research Company, the global duty-free and travel retail market is estimated to be around $55 billion in 2025, a level that remains below the peaks seen before 2019. However, the same report anticipates a gradual recovery starting this year, with the market potentially reaching around $63 billion by the end of 2026, driven by the gradual recovery in travel spending. This forecast, while uncertain, means that luxury duty-free is no longer considered an automatic growth driver. The rise of local players in Asia, the digitization of shopping, and changing traveler behavior are reshaping a model historically based on international hubs such as Hong Kong and Macau. LVMH's sale of its DFS activities in these territories thus appears to be a pragmatic choice, reflecting a broader reconfiguration of global travel retail.