THE WHAT? Sephora Korea is said to have reported a loss for the second year in a row, according to Korea Joongang Daily, leading the news outlet to speculate that the LVMH-owned retailer may be preparing to admit defeat and close stores in the Asian market.

THE DETAILS Sephora Korea saw sales drop 12.7 percent to KRW12.4 billion in 2021, as compared to 2020 figures, Korea Joonang Daily reports, quoting figures from the Financial Supervisory Service, and posted an operating loss of KRW14.2 billion.

THE WHY? The Beauty retailer is said to be struggling to keep up with the fast-paced K-beauty industry; add to that repeated restrictions due to the pandemic and dwindling tourist numbers, and it’s not surprising that its stores, opened in 2019, have failed to get the tills ringing. Sephora Korea closed its Myeong-dong branch in January.