Puig, the Barcelona-based firm behind fragrance manufacturers Rabanne, Carolina Herrera and Jean Paul Gaultier, reported an 8 p.c rise in first-quarter gross sales on Monday, beating analysts’ expectations.
The corporate reported €1.21 billion ($1.38 billion) in gross sales throughout the first three months of the 12 months, beating a FactSet consensus of €1.19 billion cited by Renta4’s analyst in a latest notice.
The outcomes come as analysts anticipate world magnificence corporations’ income development to sluggish, and with the looming risk of US tariffs that the Spanish firm priced in to its annual income estimate.
Puig maintained its expectation for a slowdown in income development to 6-8 p.c this 12 months following an 11 p.c gross sales improve throughout 2024 partly on account of tariffs within the US at present ranges, certainly one of its greatest markets.
Chairman and CEO Marc Puig mentioned the corporate expects any influence the tariffs might have will already be offset by the additional stock Puig has in its US warehouses.
“Plus a sure value improve that we are going to be implementing throughout the 12 months as soon as the shares are depleted,” he mentioned throughout a name with analysts.
Puig might have benefited within the first three months from stockpiling in anticipation of tariffs, however within the medium time period it could possibly be hit by the financial influence of commerce protectionism, mentioned Renta4 analyst Pablo Fernandez.
Gross sales in its core perfume and vogue enterprise grew by 10 p.c within the first quarter, whereas the corporate’s make-up division fell 4.2 p.c.
Competitor L’Oreal additionally reported an increase in first-quarter gross sales, beating expectations for slower development, as robust demand for its lotions and fragrance in Europe helped counter difficult circumstances within the US.
Half of Puig’s income comes from Europe, the Center East and Africa and a 3rd from the Americas, the place the corporate’s gross sales grew 12 p.c throughout the first quarter.
By Corina Pons; Edited by Charlie Devereux, Jan Harvey and Tomasz Janowski
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The French conglomerate reported gross sales development of almost 4 p.c on the energy of its skincare and perfume choices.
