Puig sales growth slows despite stable revenue

Loreal SA

28/04/2026 17:35

By Mireia Merino and Marta Serafinko

GDANSK, April 28 (Reuters) - Spanish beauty company Puig PUIGb.MC reported slower sales growth on Tuesday, reflecting more moderate demand particularly in fragrances which account for the bulk of its sales.

The results highlight growing pressure on the global beauty sector as geopolitical tensions in the Middle East disrupt airport shopping and curb international travel, a key sales channel for premium fragrance makers.

The slowdown also follows a loss of momentum in the broader fragrance market as consumers turn more cautious, raising concerns about the sustainability of recent growth trends across the industry.

KEY DETAILS

The group posted revenue of 1.22 billion euros ($1.43 billion) in the first three months of the year, slightly above the 1.21 billion euros booked in the same period last year

J.P. Morgan analysts had expected Puig's first-quarter like-for-like sales to grow 2.2%, supported by growth across all divisions even though the global fragrance boom is cooling and luxury demand remains uncertain

Puig, which derives a tenth of sales from travel retail, did not provide total travel-retail sales but is one of the more exposed beauty companies to swings in airport shopping and international travel, according to analysts

The Middle East conflict had about a 1.2% estimated negative impact, mainly in March, with further impacts expected and the company monitoring the situation

By region, like-for-like sales in the Americas increased 2.0%, Asia-Pacific rose 26.1%, and EMEA, its largest market, grew a modest 3%, reflecting softer consumer demand

Fragrances and fashion, which account for about 74% of sales, rose 3.9%, while makeup and skincare categories increased 9.2% and 4.7%, respectively

Company maintains its 2026 outlook despite the macroeconomic uncertainty, Puig's Chief Executive Officer Jose Manuel Albesa said

The results come amid talks regarding a potential merger with U.S. cosmetics giant Estee Lauder EL.N which would create the world's largest premium beauty player with brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier, and Clinique under one roof

No final decision has been taken as of April 28, and no assurance on the deal or its terms has been made, Puig added

($1 = 0.8538 euros)

 (Reporting by Mireia Merino and Marta Serafinko, editing by Matt Scuffham)

 ((Mireia.merino@thomsonreuters.com))