Sephora's Russian stores closed last March when LVMH and companies announced they were suspending operations in the country. European and US sanctions on Russia made operations in-market increasingly complex.

In July, Sephora followed other Western companies exiting the market, completely selling the subsidiary to the local general manager of the chain. At the time of the announcement, Sephora had 88 stores in Russia, with 1,200 employees generating less than 3% of the retailer's total sales, according to industry resources.

The deal closed on October 7, with Île de Beauté thanking returning customers, promising a wide range of international brands, and promising to honor previously purchased gift cards.

"A lot has changed in the time since our last meeting," the company told Reuters. "We were forced to suspend operation at our shops, but have retained all jobs and continued to support employees, while working in parallel on redesigning the company's internal processes."

The Île de Beauté perfumery chain was founded in 2001. It became the leading beauty retailer in the Russian market with 100 stores when Sephora made an initial investment in the business in 2006. Sephora took full control of the Russian retail chain in 2016 and initiated rebranding stores in Russia under the Sephora banner in 2018. The process was still underway when the pandemic hit in 2020.

Sephora is among numerous multinational companies withdrawing from the Russian market completely as the war with Ukraine drags on, and pressure from investors and consumers persists.