Sephora is owned by LVMH Moรซt Hennessy Louis Vuitton, the Paris-listed luxury group, which has owned it since 1997 and holds the parent company, Sephora SAS, at 100%. LVMH in turn is controlled by the Arnault family group, which held 49.8% in LVMH’s shareholder table for December 2025. Founded in Limoges in 1969, Sephora sits in LVMH’s Selective Retailingbusiness group, not in Perfumes & Cosmetics, and had 2,242 stores in 35 countries at 31 December 2025.
In LVMH's December 2025 shareholder table the Arnault family group held 49.8%, institutional investors 41.3%, individuals 8.6% and treasury stock 0.3%.
02
LVMH, the parent
LVMH's 2025 Universal Registration Document lists Sephora SAS, Neuilly-sur-Seine, as fully consolidated with a 100% interest. Some local units differ: the Chinese Sephora companies are held at 81% and the Spanish one at 50%.
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Selective Retailing
Sephora is grouped with Le Bon Marchรฉ and travel retailer DFS. The business group made 23% of LVMH's revenue in 2025: โฌ18.3 billion, with โฌ1.8 billion of profit from recurring operations.
04
Sephora, run as a Maison
Sephora is led by its own CEO, Guillaume Motte, who sits on LVMH's Executive Committee. It sells close to 500 brands and its own label, Sephora Collection.
What changed in 2025-26
Profit up 28% in 2025
Selective Retailing revenue rose 4% on an organic basis to โฌ18.3 billion in 2025 and profit from recurring operations rose 28% to โฌ1.8 billion, a 9.7% margin. LVMH says Sephora gained market share and opened around a hundred locations.
Exclusive brands made up nearly half of Sephora’s brand portfolio in 2025 and were its most significant source of growth. Rhode, Hailey Bieber’s brand, was Sephora’s biggest-ever launch.
DFS shrinks, Sephora carries the group
In January 2026 LVMH agreed to sell DFS’s Greater China business to China Tourism Group Duty Free. In the first nine months of 2026 Selective Retailing grew 6% organically, and Sephora entered Belgium and Croatia.
AI for the beauty advisor
LVMH’s 2026 outlook says Sephora will train its advisors through Sephora University with new tools built on technology and artificial intelligence, while its app acts as the ‘digital flagship’. As we read it, the AI bet is on the person at the counter, not on replacing the store.
Sephora and its sister businesses in LVMH
Sephora
Where it sitsSelective Retailing
Sourced fact2,242 stores in 35 countries at 31 December 2025
DFS
Where it sitsSelective Retailing
Sourced factGreater China business agreed for sale to China Tourism Group Duty Free, January 2026
Le Bon Marchรฉ
Where it sitsSelective Retailing
Sourced factParis department store; shared governance with La Samaritaine since March 2025
Parfums Christian Dior, Guerlain, Fenty Beauty
Where it sitsPerfumes & Cosmetics
Sourced factA separate business group for LVMH's own beauty brands
Cite Sephora's owner correctly: LVMH, through Sephora SAS, with the Arnault family group controlling LVMH.
Do not mix Sephora into LVMH's Perfumes & Cosmetics figures: it is reported in Selective Retailing.
For brand founders, a Sephora exclusive is the main growth route LVMH describes: nearly half the portfolio in 2025.
For investors, read Selective Retailing as Sephora plus a shrinking DFS when you model LVMH.
For builders, Sephora's AI spend points at advisor tools and the app, where the loyalty data sits.
The Business Engineer lens
Sephora shows a luxury group owning the shelf as well as the brands: LVMH reports its beauty brands in one business group and the retailer that sells hundreds of brands, rivals included, in another. The Business Engineer reads the AI era in beauty retail as a fight over the customer relationship, and Sephora’s 80 million active members are the asset that matters.
DescriptionRetailing beauty and personal care products, including cosmetics, skincare, fragrance, and haircare
Strategic Goals
DescriptionExpanding global presence, enhancing digital and omnichannel retail capabilities, maintaining strong brand partnerships, and innovating customer experiences
Additional Ownership Details
Corporate Structure and Ownership: Sephora is a wholly owned subsidiary of LVMH Moรซt Hennessy Louis Vuitton S.E., a leading global luxury goods conglomerate. LVMH acquired Sephora in 1997, recognizing its potential to enhance LVMH’s presence in the beauty retail sector. As part of LVMH, Sephora benefits from the financial strength, strategic guidance, and luxury brand expertise of its parent company. LVMH is publicly traded on the Euronext Paris under the ticker symbol MC.
Business Model and Strategy: Sephora operates a retail business model centered around offering a diverse range of beauty products from various brands, including exclusive partnerships and Sephoraโs own private label, Sephora Collection. The companyโs strategy emphasizes creating a curated shopping experience that combines high-end and emerging beauty brands. Sephoraโs retail approach focuses on experiential shopping, offering customers the ability to try products in-store and receive personalized beauty consultations.
Digital Transformation and Omnichannel Strategy: Sephora places a significant focus on digital transformation and developing its e-commerce capabilities. The company has successfully integrated online and offline shopping experiences, offering services like click-and-collect and virtual try-ons. Sephora’s mobile app and website are key components of its digital strategy, providing customers with personalized recommendations, loyalty programs, and seamless purchasing options. This omnichannel approach has been instrumental in adapting to changing consumer behaviors and preferences.
Global Expansion and Market Reach: The brand continues to expand into new markets, particularly in Asia and Latin America, where beauty consumption is growing rapidly. Sephora’s global strategy includes tailoring its product offerings to suit local preferences and trends, ensuring relevance and appeal to diverse consumer bases. The brand’s iconic black-and-white stores are strategically located in key urban areas and shopping centers worldwide.
Brand Partnerships and Product Innovation: Sephora is known for its strategic partnerships with prestigious beauty brands and innovative product launches. The company collaborates closely with brands to offer exclusive products and experiences, fostering strong relationships within the beauty industry. Sephora’s private label, Sephora Collection, is a testament to its commitment to productinnovation, offering a wide range of high-quality products at accessible price points. The brand also emphasizes clean and sustainable beauty, aligning with consumer demand for ethical products.
Customer Experience and Engagement: Sephora is dedicated to delivering exceptional customer experiences, both in-store and online. The company offers personalized beauty consultations, workshops, and events to engage customers and provide expert advice. Sephora’s Beauty Insider loyalty program is a cornerstone of its customer engagement strategy, rewarding repeat customers with exclusive offers, early access to products, and personalized recommendations. This focus on customer service and loyalty has helped Sephora maintain a strong and devoted customer base.
Leadership and Innovation: The company’s leadership emphasizes agility, creativity, and inclusivity, ensuring that Sephora remains at the forefront of beauty retail trends. Sephora’s commitment to fostering a diverse and inclusive workplace further strengthens its brand image and appeal to a wide range of consumers.
Acquisition Date
DetailsJuly 1997
AnalysisLVMH’s acquisition of Sephora marked a significant moment in the history of both companies.
Acquisition Price
Details$262 million
AnalysisThe acquisition allowed LVMH to enter the cosmetics industry with a well-established brand.
LVMH’s Portfolio Expansion
DetailsSephora became part of LVMH’s extensive portfolio, strengthening the luxury conglomerate’s presence in perfumes and cosmetics.
AnalysisThe acquisition diversified LVMH’s offerings and increased its reach in the beauty market.
Contribution to LVMH’s Revenue
DetailsIn 2022, LVMH’s perfumes and cosmetics category, including Sephora, generated โฌ7.7 billion in revenue.
AnalysisSephora’s success as a cosmetics chain has significantly contributed to LVMH’s growth in this segment.
Sephora’s Reputation
DetailsSephora is known as a trusted beauty destination, offering a wide range of high-quality products.
AnalysisSephora’s reputation and product diversity have made it a favorite among beauty enthusiasts worldwide.
Synergistic Relationship
DetailsThe acquisition has been a synergistic relationship, benefiting both LVMH and Sephora.
AnalysisLVMH’s resources and expertise have supported Sephora’s expansion, while Sephora has enhanced LVMH’s presence in cosmetics.
Embracing Innovation and Diversity
DetailsSephora’s commitment to innovation and diversity aligns with LVMH’s values.
AnalysisTheir shared dedication to excellence and inclusivity has fostered customer loyalty and industry leadership.
Sephora’s Acquisition by LVMH
Sephora, the renowned French cosmetics chain founded in 1969, underwent a significant acquisition in July 1997 when it was bought by luxury conglomerate LVMH (Moรซt Hennessy Louis Vuitton) . This acquisition allowed LVMH to expand its presence in the beauty industry and strengthen its position in the perfumes and cosmetics category.
LVMH’s Expanding Portfolio
LVMH, a global luxury goods company, has an extensive portfolio of prestigious brands across various sectors, including fashion, leather goods, perfumes, cosmetics, and more. The acquisition of Sephora added a prominent cosmetics chain to its array of brands, enabling LVMH to cater to a broader and diverse consumer base.
Sephora’s Contribution to LVMH’s Revenue
A Trusted Beauty Destination
Sephora’s reputation as a trusted beauty destination and its commitment to offering a wide range of high-quality products have made it a favorite among beauty enthusiasts worldwide. With its innovative store concepts, diverse product offerings, and strong online presence, Sephora has solidified its position as a leading beauty retailer in the global market.
A Synergistic Relationship
The acquisition of Sephora by LVMH has proven to be a synergistic relationship, with both entities benefiting from the collaboration. LVMH’s extensive resources, global reach, and brandmanagement expertise have provided Sephora with valuable support to expand its footprint and maintain its position as a beauty retail powerhouse.
Embracing Innovation and Diversity
Sephora’s commitment to embracing innovation and diversity in the beauty industry aligns with LVMH’s core values and dedication to excellence. Through its continuous efforts to offer inclusive beauty products and experiences, Sephora has fostered a loyal customer base and contributed to LVMH’s reputation as a leader in the luxury and beauty sectors.
Conclusion
Sephora’s acquisition by LVMH in 1997 marked a pivotal moment in both companies’ histories. As part of the LVMH group, Sephora has grown into an iconic brand in the cosmetics industry, offering customers a vast selection of beauty products and personalized experiences. LVMH’s acquisition of Sephora has been a testament to the power of strategic partnerships and the ability to leverage collective strengths to drive growth and success in the dynamic and competitive beauty market. With Sephora’s continued success and LVMH’s commitment to innovation and excellence, the duo remains at the forefront of the luxury and beauty sectors, delighting customers and shaping the future of the industry.
Key Highlights of Sephora’s Acquisition by LVMH
Historical Acquisition: Sephora, a famous French cosmetics chain established in 1969, was acquired by the luxury conglomerate LVMH in July 1997 .
Strengthening LVMH’s Portfolio: This strategic acquisition bolstered LVMH’s foothold in the beauty industry, positioning it prominently in the perfumes and cosmetics sector.
Global Beauty Powerhouse: Since the acquisition, Sephora has solidified its reputation as a trusted global beauty destination, offering a diverse range of high-quality products.
Synergistic Growth: The acquisition has proven beneficial for both LVMH and Sephora, leveraging their combined strengths for sustained growth in the beauty market.
Innovative and Inclusive: Sephora’s emphasis on innovation and diversity in the beauty space aligns seamlessly with LVMH’s core values, enhancing the conglomerate’s overall brand image.
Driving the Future of Beauty: The partnership between Sephora and LVMH represents the merger of strategic foresight and excellence, setting trends and standards in the luxury and beauty sectors.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
