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Investing.com -- Shares of Puig climbed 4% following the company’s robust first-quarter performance, driven by impressive growth in its fragrance division, particularly in the Americas. The company outpaced its competitors with a like-for-like (LFL) sales increase of 10.7% in the fragrance and fashion segment, which accounts for approximately 74% of its group sales.
Puig’s success in the U.S. market was a significant contributor to its positive results, with the region posting double-digit growth. The company attributes this to its relatively lower market share in the U.S. compared to other markets, allowing for faster expansion compared to peers.
Standout products included Carolina Herrera’s Good Girl and Jean Paul Gaultier’s Le Male, alongside continued innovation with new launches such as Byredo Blanche Absolu. While Puig anticipates the fragrance category growth to normalize to around 6-7% LFL as the year progresses, the Q1 results signal a strong start.
In contrast, the make-up segment, representing about 14% of group sales, experienced a 6% decline in LFL, with challenges in the U.S. market due to the repositioning of the Charlotte Tilbury spray. However, Puig is optimistic about a turnaround in Q2, projecting a positive LFL growth. The skincare division, comprising roughly 12% of group sales, saw a healthy 7.2% LFL increase, with Uriage leading the charge through its core products and new launches.
Geographically, the EMEA region showed a modest 3.8% LFL growth, with softness in markets like France, where the slowdown is expected to persist through 2025. However, the Americas and APAC regions reported LFL increases of 11.8% and 13.2%, respectively, with the U.S. and Latin America performing exceptionally well.
Puig plans to expand its presence in Latin America, introducing the Charlotte Tilbury brand to the market. Strong performances in South Korea and Japan were noted, bolstered by the momentum of subsidiaries established in the previous two years.
Barclays (LON:BARC) commented on Puig’s performance, stating, "We think the fragrance narrative is supportive, and while make-up was weak, a LFL inflection from Q2 will be supportive to guide. EMEA weakness is a concern, but global product launches should anchor LFL delivery."
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