Puig beats sales forecasts as makeup growth offsets skin care dip

Puig Surpasses Sales Forecasts as Strong Makeup Offsets Skincare Decline

Puig's Third-Quarter Sales Performance and Market Outlook

By Mireia Merino and Marta Serafinko

Oct 21 (Reuters) - Spanish beauty company Puig reported stronger-than-expected third-quarter sales growth on Wednesday, as robust demand for Charlotte Tilbury makeup helped offset softer skin care and a broader cooldown in post-pandemic fragrance demand.

Investors are assessing whether the Barcelona-based firm can keep gaining market share, with demand for fragrance holding up better than other areas of beauty. They are also watching whether strength in makeup can offset softness in prestige skin care and support growth.

Key Financial Highlights

Revenue and Segment Performance

KEY DETAILS

• Third-quarter net revenue was €1.39 billion ($1.56 billion), up 5.6% like-for-like, well above Jefferies' forecast of 5.0%

• Puig said the Middle East conflict did not meaningfully affect its performance in the region, from where it generates a tenth of its sales

Category Breakdown

• Fragrances and fashion, the bulk of its revenue, rose 3.9%, makeup up 16.1% and skin care down 0.8%, on a like-for-like basis

Regional Sales Growth

• Like-for-like sales by region: EMEA — its largest market — up 3.8%, Americas 6.2% and Asia-Pacific 12.9%

Strategic Initiatives and Outlook

• The company maintained its 2026 guidance, including like-for-like revenue growth ahead of the premium beauty market and a nearly 40% dividend payout ratio

• It will hold its first Capital Markets Day on October 28

• Weakness in premium skincare, especially in North America, will likely continue into Q4 and start easing next year, Puig said on a call

($1 = 0.89 euros)

(Reporting by Mireia Merino and Marta Serafinko, Editing by Joyjeet Das)