Sephora is a renowned beauty retailer. It is known for its wide range of high-quality makeup, skincare, and fragrance products. Sephora is a brand that many investors are eager to get a piece of. However, if you’re looking to invest in Sephora stock, you might be disappointed. This is because Sephora is not a publicly traded company.
Sephora Stock Price: Who Owns Sephora?
Sephora is actually a subsidiary of Moët Hennessy Louis Vuitton (LVMH). LVHM is one of the world’s largest luxury goods conglomerates based in France. As such, if you want to have a stake in Sephora’s success, you’ll need to buy stock in its parent company LVMH.
Since joining forces with luxury conglomerate LVMH, Sephora has undergone a remarkable transformation. It has expanded globally and broadened its product offerings, solidifying its position as a premier beauty retailer.
Market Share Expansion: Under LVMH’s ownership, Sephora has consistently grown its market share. Today, it contributes approximately 45% of LVMH’s revenue in the United States, highlighting its success as a revenue generator.
Adaptive Strategy: LVMH’s ownership has driven Sephora to embrace a forward-thinking omnichannel strategy. Recognizing the changing retail landscape, Sephora has expanded its presence beyond traditional malls. It has introduced innovative concepts like Sephora Studios, combining skincare and beauty services for an immersive customer experience.
Global Reach: LVMH’s support has propelled Sephora into new markets worldwide. The partnership has enabled Sephora to establish a strong presence in various regions.
Diverse Product Range: Thanks to LVMH, Sephora now has access to an extensive array of luxury brand products. As a distribution channel for LVMH’s perfumes and cosmetics, Sephora offers customers a wide selection of high-end beauty items.
LVMH is listed on several European exchanges under the ticker symbol LVMH. It also trades on American stock markets under the tickers LVMUY or LVMHF. Of these options, LVMUY is considered the most liquid share class of LVMH stock.
Buying shares of LVMH will give you some exposure to Sephora as part of its overall business portfolio. But, it’s important to note that Sephora represents only a part of LVMH’s revenues. Thus, it isn’t an easy way to gain pure investment exposure targeting the Sephora brand itself.
Investing in Sephora stock directly may not be possible at this time. This is due to its private status within LVMH’s structure. But, there are still opportunities for savvy investors seeking exposure to the beauty industry giant. Astute investors can buy shares in LVMH and monitor their performance. This way, they can stay ahead of trends and take advantage of the continued growth trajectory in the beauty sector.
Why is Sephora not a publicly traded company?
Sephora is currently not listed on any global stock exchange for public trading as of 2023. The reason behind this lies in the fact that Sephora is fully owned by Moët Hennessy Louis Vuitton (LVMH).
As Sephora falls under the umbrella of LVMH, individuals who want to buy Sephora stock cannot do so directly. However, there is an alternative available. Investors can instead buy shares in LVMH. By investing in LVMH, they gain exposure to all the luxury brands controlled by the conglomerate, including Sephora.
For those seeking indirect investment options for Sephora through LVMH, there are alternatives. Some exchange-traded funds (ETFs) include shares in LVMH as part of their portfolio. This allows investors to invest in these ETFs and indirectly become shareholders of LVMH. At the same time, they will benefit from its ownership of Sephora.
Furthermore, some funds track benchmarks like the S&P Global Luxury Index. These funds will have holdings of LVMUY (LVMH’s ticker symbol). This boosts their exposure to the conglomerate’s various luxury brands.
Investors who wish to only invest in Sephora may face disappointment due to its non-publicly traded status. However, they can invest in LVMH instead. They would still gain access to this highly sought-after beauty brand. Additionally, they would have access to other esteemed luxury labels within the conglomerate.
What Options Are Available for Investors Looking to Buy Sephora Stock?
Investors looking to gain exposure to Sephora’s brand within the context of LVMH’s stock have a range of options available. Here are some potential approaches:
1. Direct Investment in LVMH
LVMH Moët Hennessy Louis Vuitton is a French conglomerate that owns Sephora. It offers shares on various stock exchanges. Investors can buy LVMH shares on European exchanges using the ticker symbol LVMH. On American stock markets, they can buy shares using tickers LVMUY or LVMHF. By investing in LVMH, shareholders indirectly gain exposure to Sephora. Also, they get exposure to other prestigious brands within the conglomerate.
2. Consider Exchange-Traded Funds (ETFs)
Some exchange-traded funds hold shares of LVMH. This makes them an alternative option for investors seeking exposure to both LVMH and Sephora. Additionally, there are funds that track the S&P Global Luxury Index, including holdings of LVMUY. Investing in these ETFs provides a diversified approach. It allows investors to benefit from the performance of both LVMH and its subsidiary, Sephora.
3. Evaluate Proportion of Sephora’s Revenues
It is important for investors to note that investing in LVMH offers exposure to the Sephora brand. But, it represents only a fraction of the conglomerate’s total revenues (estimated to be less than 15%). Thus, those interested in pure investment exposure primarily focused on Sephora should assess whether this level of indirect exposure through owning shares of LVMH aligns with their investment strategy.
4. Stay Updated
Potential investors should stay informed about any developments related to Sephora stock. There is currently no indication of a Sephora stock IPO. But, it is worth noting that LVMH has a history of brand acquisitions. Investors should keep an eye on any changes or opportunities that may arise in the future. This way they can position themselves to capitalize on investment openings.
Sephora Stock Price: Final Thoughts
In conclusion, Sephora stock is not publicly traded. So, there is not Sephora stock price available. But, investors can still gain exposure to the brand by investing in its parent company, LVMH. Investors can indirectly benefit from Sephora’s success by purchasing shares of LVMH. They also gain exposure to the conglomerate’s diverse portfolio of luxury brands.
Investors have alternative options. They can consider ETFs that hold LVMH shares or funds tracking relevant indices. Investing in LVMH provides exposure to Sephora. Yet, it’s important to note that Sephora represents only a portion of LVMH’s revenues. Nonetheless, LVMH maintains a strong reputation and position in the luxury goods market. It continues to be an attractive investment option for those aiming to capitalize on Sephora’s ongoing growth and popularity.