Puig outperforms forecasts with 8% sales growth in Q1

Puig, the Barcelona-based company behind perfume brands Rabanne, Carolina Herrera, and Jean Paul Gaultier, posted an 8% rise in first-quarter sales on Monday, outperforming analysts’ expectations.

According to a recent note by Renta4 analyst Pablo Fernandez, the company reported €1.21 billion ($1.38 billion) in sales for the first three months of the year, exceeding a FactSet consensus estimate of €1.19 billion.

The results come at a time when analysts expect revenue growth across the global beauty sector to slow, compounded by the looming threat of U.S. tariffs, which Puig has factored into its annual revenue outlook.

Despite the strong quarter, Puig maintained its forecast for a slowdown in revenue growth to between 6% and 8% this year, following an 11% sales increase in 2024. The company noted that this forecast already accounts for the anticipated impact of tariffs in the United States, one of its largest markets. “These expectations include the impact of U.S. tariffs at currently anticipated levels,” Puig said in a presentation.

Puig may have benefited in the first quarter from stockpiling ahead of potential tariffs. However, Fernandez warned that over the medium term, the company could feel the effects of broader economic pressures linked to trade protectionism.

Sales in Puig’s core fragrance and fashion division rose by 10% during the quarter, while sales in its makeup division declined by 4.2%.

Rival beauty group L’Oréal also reported stronger-than-expected first-quarter sales, with high demand for its skincare and fragrance products in Europe helping to offset a more challenging U.S. market.

Regional performance remained a strong point for Puig. Half of its revenue came from Europe, the Middle East, and Africa, while a third was generated in the Americas, where Puig’s sales grew by 12% during the first quarter.

Reuters