Last Updated on 06/29/2021 by GS Staff
Can you purchase Sephora stock?
Sephora is not publicly traded. You cannot solely purchase Sephora stock. However, its parent company, LVMH (Louis Vuitton Moët Hennessy), is publicly traded. The company is a French luxury goods conglomerate headquartered in Paris, France.
How to purchase LVMH stock?
LVMH trades on the European stock exchange called Euronext (European New Exchange Technology). Its markets include Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris. You can view trading information for LVMH on the Euronext website found here. Its stock symbol is LVMH in this market.
Investors in the United States can buy LVMH stock through the over-the-counter (OTC) market if they do not have access to the European market through their broker. The OTC stock symbol is LVMUY. Each share of LVMUY represents one-fifth of a regular share. So, if the regular shares are trading at $800, LVMUY will be trading around $160.
While liquidity can be a concern with OTC market stocks, it is not a major concern for LVMUY. Its trading volume is 123,487, on average, at the time of this article, so there is a sufficient market to buy and sell. You might also see LVMHF trading through your broker. This is another OTC stock of LVMH. However, the trading volume is low at around 1,770 on average. We like LVMUY better than LVMHF because it has better liquidity.
What does LVMH own?
LVMH has numerous subsidiaries beyond the names we already mentioned that include Sephora, Louis Vuitton, Moët, and Hennessy. In other words, you shouldn’t invest in LVMH simply because you love Sephora. The business is extremely complex with many businesses in these five sectors: Wine & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing. Some of the brands owned by the company you are likely familiar with are Belvedere Vodka, Dom Pérignon Champagne, Marc Jacobs, Christian Dior, Tiffany, and TAG Heuer.
Overall, the company holds 75 high-end brands that produced 44.7 billion euros in revenue for 2020. The company website at lvmh.com/investors is a good starting point to begin to learn about the company. Specifically, a review of the past annual reports on the site will help you dissect the business.
When did LVMH acquire Sephora?
Sephora was launched in 1970 by Dominique Mandonnaud in France. LVMH acquired Sephora in 1997 for $262 million. The first Sephora opened in New York City approximately a year after it was acquired. There are now about 2,700 stores globally with more than 500 in the Americas.
Bernard Arnault & LVMH
Bernard Arnault is the chairman and CEO of LVMH. Arnault and his family are the richest people in the world according to Forbes (as of 6/7/2021). The net worth of the family is approximately $192 billion. This beats out Amazon’s Jeff Bezos at #2 who has an estimated net worth of $186 billion and Elon Musk at #3 with about $152 billion.
Arnault started his career in the family construction business, which he headed in 1971. He eventually shifted the focus of the business to real estate. In 1984, he used funds he made through the construction/real estate business to acquire the almost bankrupt Agache-Willot-Boussac, a business built of a mix of retail, fashion, and manufacturing. While there were a few gems in this business, the most notable one was the Christian Dior fashion house. This would turn out to be the start of what would become Arnault’s luxury goods empire.
If you are researching LVMH for potential investment purposes, you should consider the value of Arnault to business. He has been CEO since 1989 and has created tremendous shareholder value through the years. At 72, he certainly isn’t young, but he seemingly has several more years to continue to dominate the luxury goods market.