What is Sephora’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Sephora because it is a private company. However, Ulta Beauty (NASDAQ: ULTA), Estee Lauder (NYSE: EL), and L’Oreal (OTCMKYS: LRCY) are cosmetic stocks that traders can invest in.
Sephora is one of the most recognized names in the beauty industry. In its stores, you can find cosmetics, skincare, haircare, and fragrance products. The brand operates over 2700 stores across 35 countries, 500 of which are in the US. How and why did Sephora become so famous? The company has a unique concept that allows consumers to test and interact with its products before purchasing them. Its popularity skyrocketed even further when purchased by one of the biggest companies in the world.
Unfortunately, Sephora remains a private company, and it isn’t possible to directly invest in it. However, it is part of a recognized public group, Moët Hennessy Louis Vuitton (LVMH). Here is everything you need to know about Sephora and its parent company before buying its shares.
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Sephora Introduction (No Stock Symbol)
Sephora began in Limoges, France, in 1969 as a small perfumery. Between 1970 and 1993, there’s limited Sephora history. We know a British pharmacy chain called Boots ran it.
The brand slowly expanded throughout France and had 38 stores by 1993. French entrepreneur Dominique Mandonnaud bought the company that same year. He merged Sephora’s 38 stores with his own 12-store perfumery business called Shop 8.
He was credited with Sephora’s innovative “assisted self-service” retail model, encouraging customers to test products before buying. In 1995, Sephora launched its private bath and body product label under the Sephora Collection brand.
Mandonnaud’s ownership of Sephora didn’t last very long. In 1997, he sold Sephora to the luxury conglomerate Moët Hennessy Louis Vuitton (LVMH) for an undisclosed sum. This acquisition provided the capital for Sephora’s explosive global expansion, which started in the late 1990s. Does that mean there’s Sephora stock?
Sephora Expansion
Sephora’s expansion started with France’s European neighbors in 1998 (Italy, Portugal, Spain and Poland). The first US store opened in 1998 in New York City’s Soho neighborhood. Sephora.com launched in 1999, followed by the first Canadian store in 2004 in Toronto.
Throughout the 2000s, Sephora rapidly grew its store footprint through new locations and innovative store-within-a-store concepts. It originally partnered with JC Penney but eventually moved on to Kohl’s. In 2007, Sephora entered new markets like the Middle East, and in 2014, it entered Australia.
Today, Sephora operates over 2700 stores across 35 countries, offering nearly 340 brands, including its own Sephora Collection label. The company’s flagship store in Paris’ Champs Elysees reopened after six months of renovations.
Many consider it the capital’s ultimate beauty temple. Sephora also reentered the UK market with a store in London’s Westfield Shopping Center. It became an instant success. And many wondered about Sephora stock.
Sephora Stock of Financials
Sephora doesn’t release its financials publicly because it remains a private company and doesn’t report to the SEC. The brand belongs to one of the most recognized companies in the world, LVMH.
According to LVMH’s 2023 annual results, Sephora saw a record revenue increase by 25% YoY to $19.4B and a 76% profit increase in recurring operations. The company surpassed all expectations and is hungry for more.
For the moment, LVMH is not considering an IPO for Sephora. However, LVMH’s CEO, Bernard Arnault, has his hands in many other private and public companies, like Sephora stock.
Thanks to its fully-owned subsidiaries, L Catterton, Financière Agache, and Algae Ventures, Arnault and his family can invest their capital into companies across all stages, from seed to pre-IPO to multinational companies.
LVMH Moet Hennessy Louis Vuitton SA (OTCMKTS: LVMUY or EPA:MC)
LVMH’s stock trades in France on the Euronext Paris (EPA), which merged with the Amsterdam, Lisbon, and Brussels exchanges in 2000. Investors can trade the Sephora stock over-the-counter (OTC) on the US stock market under the ticker $LVMUY.
The French multinational corporation owns and manages around 75 prestigious luxury brands across various sectors. Some of the most recognized are Louis Vuitton, Sephora, Christian Dior, Celine, Marc Jacobs, Givenchy, Kenzo, Moët & Chandon, Veuve Clicquot, Hennessy, Guerlain, TAG Heuer, Hublot, Zenith, Bulgari among others. LVMH’s largest and most profitable segment is fashion and leather, led by Louis Vuitton and Christian Dior.
Overall, LVMH’s revenue has nearly tripled in the last decade. In 2023, it surpassed $93B for the first time, representing a 12% increase YoY. Its gross profit was over $64B. The company has been profitable for as long as we can remember.
Bernard Arnault and IPOs
Bernard Arnault has been involved in several IPOs through Financière Agache or L Catterton. He acquired a majority stake in Birkenstock (NYSE: BIRK) in 2021 after the company had been a family business for decades.
Arnault’s son, Alexandre Arnault, was nominated to join Birkenstock‘s board of directors after the company went public in 2023. He was also an investor in Oddity Tech (NASDAQ: ODD) and backed its IPO. Does that mean anything for Sephora stock?
Sephora Stock Competitors
The beauty industry faces a lot of competition. Here are some of Sephora’s stock’s most important competitors. You will soon notice that some of these competitors have no choice but to sell their products at Sephora stores to remain competitive.
1. Ulta Beauty Inc (NASDAQ: ULTA)
Sephora stock competitor Ulta is an American chain of beauty stores. It offers various products across beauty categories like cosmetics, skincare, haircare, fragrance, and more.
This includes both high-end prestige and affordable brands. This diverse assortment attracts a broad customer base and gives Ulta an edge over Sephora’s focus on luxury beauty.
Ulta’s Ultamate Rewards loyalty program has over 38M members, who account for 95% of sales. This program is larger and more established than Sephora’s loyalty program, giving Ulta an advantage in customer retention and targeted promotions. Like Sephora, Ulta partnered with retailers such as Target to open shop-in-shops.
2. Estee Lauder Companies Inc (NYSE: EL)
While Sephora primarily sells various brands, Estee Lauder manufactures and markets its prestigious brands like Estee Lauder, Clinique, MAC Cosmetics, and others.
Estee Lauder’s brands are sold at Sephora stores, other retailers, department stores, and the company’s freestanding stores and websites.
Estee Lauder’s stock has been struggling and underperforming due to challenges in its key Chinese market and Asian retail business. The company expects its sales to drop compared to previous years.
Many analysts expect the company to replace its CEO if it can’t revive its business soon. EL’s stock is down 64% since its all-time high, established in December 2021.
3. L’Oreal ADR (OTCMKTS: LRLCY)
L’Oreal is a French company that is Sephora’s major competitor in the cosmetics and beauty products industry. The company is a manufacturer and marketer of prestigious beauty brands like Lancome, Yves Saint Laurent, Maybelline, and others.
Like Estee Lauder, L’Oreal’s products are sold at Sephora stores, other retailers, and outlets. Like Estee Lauder, L’Oreal has faced issues in China and Asia, leading to stock struggles and disappointing sales. The company’s latest financials have missed expectations.
4. Coty Inc (NYSE: COTY)
Coty is an American cosmetics company that manufactures and markets a wide range of products, including fragrances, color cosmetics, hair color, and styling products. Sephora stores sell well-known Coty brands like CoverGirl, Marc Jacobs, Gucci, and Burberry.
Like Estee Lauder and L’Oreal, Coty has been struggling for different reasons. It all began with its $12.5B acquisition of P&G’s beauty brands like CoverGirl, which did not align well with the consumer shift towards prestige beauty products over mass-market brands. Coty also has issues with Kylie Cosmetics, which it acquired from Kylie Jenner.
However, the company has been working on a turnaround, selling off its professional hair care business, Wella, to pay down debt. It also changed its new leadership and focused on its prestige fragrance portfolio, which has performed well.
5. Amazon (NASDAQ: AMZN)
In recent years, Amazon has emerged as a dominant force in the online sale of beauty products across various categories. Its vast online marketplace offers beauty and personal care items from third-party sellers and private-label brands.
Amazon captured a significant share of online beauty sales thanks to its competitive pricing, fast shipping options, and Prime membership benefits.
According to some data, Amazon has outpaced Sephora and Ulta in key online beauty categories like color cosmetics and skincare. While it isn’t a beauty company, Amazon is disrupting this industry.
Final Thoughts: Sephora Stock
To conclude, there isn’t Sephora stock to trade. Sephora is an important player in the beauty industry. The company is thriving thanks to LVMH’s branding. It sells its household products and its competitors’ products, something most companies can’t afford to do.
The brand is profitable and quickly growing, but some investors remain disappointed because it’s a private company. Bernard Arnault has no plans to make it a public company for now. However, investing in LVMH in Europe or the US in the OTC markets is possible.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
LVMH owns Sephora, and there are no signs it will go public soon.
LVMH is trading near an all-time high and is experiencing strong growth. It is a solid company to invest in.
Sephora has many competitors, including Ulta Beauty, Estee Lauder, L’Oreal, and Coty.
