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On Friday, after Puig notified Spain’s stock market regulator about the withdrawal, its shares dipped significantly by 9 percent. By the end of the trading day, however, the overall depreciation had slowed, ending at a 3.4 percent decrease, equating to 18.99 euros.
Puig official statement on the matter affirmed that “Charlotte Tilbury, one of the brands in Puig’s portfolio, is conducting a global voluntary withdrawal for select batches of its Airbrush Flawless Setting Spray, after routine product testing identified an isolated quality issue in a limited number of batches, which, in any event, does not make the product unsafe. No other Charlotte Tilbury products are effected”.
Jumping to Monday, shares of the group shot back up, ending the trading day at 19.45 euros, a 2.4 percent gain against Friday’s closing number.
The company anticipates the voluntary recall to affect the performance of its makeup division, but it does not foresee a significant impact on its overall full-year performance.
Despite the setback, Puig maintains its mid-term guidance that was announced at the time of its IPO. The company remains optimistic about achieving its goals for the year, which includes a stable earnings before interest, taxes, depreciation, and amortization margin in 2024 against 2023.
Returning to positive growth in 2024’s third quarter, Puig displayed the strength of its makeup segment through the double-digit increase in Charlotte Tilbury sales, its most prominent brand, within the EMEA zone and the Americas.
Sales for Puig, which owns Tilbury, Rabanne, Carolina Herrera, and Byredo, within the quarter ending Sept. 20 amounted to 1.26 billion euros, an 11.1 percent increase on a reported basis.
Moreover, Puig’s makeup sales, in the opening nine months of 2024, rose 1.4 percent in both reported and constant terms, reaching 535 million euros.
When it went public in May, Puig informed it had medium-term guidance of high-single-digit like-for-like growth, which is notably beyond the premium beauty market’s gains. However, on Monday, Puig’s stocks were still 20.6 percent below its initial trading level.
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