PARIS – Puig stock recovered some ground on Monday morning after plunging Friday following the Spanish beauty and fashion group’s announcement that it was withdrawing a batch of Charlotte Tilbury makeup spray because of a quality issue.
Company shares declined by as much as 9 percent after it issued a statement to Spain’s stock market regulator. They ended the day down 4.1 percent to 18.88 euros.
“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,” Puig said in a statement.
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At 10:50 a.m. CET Monday, the group’s shares were trading at 19.20 euros, a 1.1 percent gain against Friday’s close.
Puig said the voluntary withdrawal is expected to impact the performance of its makeup segment, but not have a material effect on the group’s overall full-year performance.
The company said it is maintaining its mid-term guidance announced at the time of its IPO and is confident in achieving its goals for this year, which include a stable earnings before interest, taxes depreciation and amortization margin in 2024 against 2023.
The third quarter of 2024 marked the return of Puig’s makeup segment into positive growth, as the sell-out of Charlotte Tilbury – the largest brand within the category – registered a double-digit increase in its largest markets: the Europe, Middle East and Africa zone, and the Americas.
Sales for the owner of Tilbury, Rabanne, Carolina Herrera and Byredo in the three months ended Sept. 20 totaled 1.26 billion euros, up 11.1 percent on a reported basis.
In the first nine months of 2024, Puig’s makeup sales were up 1.4 percent in both reported and constant terms to 535 million euros.
Puig went public in May, when it gave medium-term guidance of high single-digit like-for-like growth, well ahead of the premium beauty market’s gains. On Friday, Puig’s stock was approximately 23 percent below its initial trading level.
