Published by Global Banking & Finance Review®
Posted on February 27, 2025
2 min readLast updated: January 25, 2026
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Puig anticipates slower sales growth in 2025 due to potential US tariffs, with fragrances remaining a key growth area.
By Corina Pons
MADRID (Reuters) - Puig, the Spanish beauty company behind perfume brands Rabanne, Carolina Herrera and Jean Paul Gaultier, expects revenue growth to slow to 6%-8% this year following an 11% increase in sales in 2024.
The company has been aiming to improve gross margins to cope with potential tariffs in the United States, one of its biggest markets, and has priced them in to its revenue projection.
"But this outlook took into consideration a potential level of tariffs that was lower than what we heard overnight, of 25%", Chairman and CEO Marc Puig told analysts in a call, saying that the company may need to reassess the potential impact if that rate is imposed.
U.S. President Donald Trump's on Wednesday said his administration would soon announce a 25% "reciprocal" tariff on goods from the EU.
The company, which also owns luxury skincare brand Byredo and make-up brand Charlotte Tilbury, said the weaker growth outlook was mainly due to the market's moderation, particularly in the make-up and skincare segment.
"We remain very confident in the prospect of fragrances for 2025," Puig added.
Full-year net profit reached 531 million euros ($552.82 million), a 14% rise from 2023. Analysts, on average, had expected a profit of 542.5 million euros. Sales reached 4.79 billion euros, up 11%.
The Spanish company surpassed its goal of growing sales faster than the 6%-7% forecast for the global premium beauty market last year.
The company, which first listed on the Madrid stock exchange in May, has seen its share price plunge 25% since the initial public offering.
Puig blamed costs related to the IPO and the payment of employee bonuses for a 26% fall in net profit in the first half of the year.
The Barcelona-based company reported strong holiday season sales thanks to less exposure to sluggish demand in China.
Half of its revenue comes from Europe, the Middle East and Africa, and a third from the Americas.
The company said higher growth in fragrances helped it offset slower business in the make-up sector.
Larger rivals such as L'Oreal and Estee Lauder reported slower sales in 2024 due to weak Chinese demand and persistent inflation in the United States, which also dented demand for beauty products.
($1 = 0.9605 euros)
(Reporting by Corina Pons; editing by Charlie Devereux, Andrei Khalip and Leslie Adler)
Puig expects revenue growth to slow to 6%-8% in 2025, following an 11% increase in the previous year.
Puig has factored in potential tariffs in its revenue projections, but the outlook was based on a lower tariff level than the recently announced 25%.
The weaker growth outlook is primarily due to market moderation, especially in the make-up sector, alongside the impact of potential US tariffs.
Puig reported a net profit of 531 million euros, which is a 14% rise from the previous year, although it fell short of analysts' expectations.
Half of Puig's revenue comes from Europe, the Middle East, and Africa, while a third is generated from the Americas.
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