Barcelona-based beauty conglomerate Puig reported a robust start to fiscal year 2025, with like-for-like sales up 7.5% in Q1, reaching €1.2 billion. While global macroeconomic headwinds and US tariff uncertainties loom large, the company reaffirmed its 6–8% full-year growth target, helping boost its share price by 2.5% following the announcement on Monday.
“We’re off to a strong start in 2025, continuing to outperform the premium beauty market,” said CEO Marc Puig, noting strong growth across all regions, particularly in the Americas. The company’s fragrance and fashion division — representing the lion’s share of revenue — remains its strongest performer, while makeup continues to be a drag on overall performance.
Fragrance and Niche Prestige Drive Gains, While Makeup Lags
Puig’s fragrance and fashion segment, which accounts for 74% of group revenue, brought in €896.4 million, reflecting 10.4% like-for-like growth. Key growth drivers included:
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Rabanne’s Phantom
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Carolina Herrera’s Good Girl
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Jean Paul Gaultier’s Le Male
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And niche label Byredo, which launched Blanche Absolu in March.
The skincare division (12% of revenue) grew 7.2% to €144 million, led by Uriage, Puig’s dermatological brand, which launched its Roséliane sensitive skin serum and Hyseac anti-blemish line in April. Charlotte Tilbury Skincare and Dr. Barbara Sturm also contributed to growth.
Makeup, however, continued its recent underperformance. The category declined 6% to €165.3 million, following a 1.3% drop in 2024. The dip was largely attributed to the late replenishment of Charlotte Tilbury’s bestselling Airbrush Flawless Filter Setting Spray, alongside continued market disruption from dupes.
Puig acknowledged the issue but said a strategy is in place to address it. He also expressed optimism that Charlotte Tilbury’s upcoming expansion into Mexico and Latin America will strengthen the segment in Q2 and beyond. Overall, Puig forecasts low-single-digit makeup growth in 2025.
Regional Performance: Americas Leads, Asia-Pacific Accelerates
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EMEA (53% of revenue): Grew 3.8%, but Puig warned of a likely slowdown in coming quarters due to softening consumer sentiment, especially in France.
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Americas (37% of revenue): Achieved 11.8% growth, or €451 million in revenue, thanks to strong fragrance demand — despite tariffs and macroeconomic instability.
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Asia-Pacific (9% of revenue): Delivered a standout 13.2% increase to €111.1 million, led by growth in South Korea and Japan. Byredo also opened a new flagship store in Tokyo. Performance in China remains minimal and was not reported.
Tariff Strategy: Inventory Buildup and Price Adjustments
Puig remains cautious but prepared in the face of US tariffs introduced under the Trump administration. The company stockpiled inventory in US warehouses ahead of potential disruptions and plans to roll out modest price increases throughout the year once these supplies run low.
“We expect low-single-digit price increases, strategically phased to offset tariff impact,” said Puig. He emphasized that despite these challenges, the company remains “bullish” on 2025.
Beauty Sector Remains Resilient
Puig is now the second major beauty player — following L’Oréal’s 3.5% Q1 revenue increase — to post positive results amid challenging global conditions. Industry watchers await Coty and Estée Lauder’s earnings later this month to see if this trend continues.
CEO Marc Puig concluded: “Looking ahead, we maintain our 2025 outlook in spite of the challenging global macroeconomic environment. Our diversified portfolio, global reach, and resilience in prestige and niche markets give us confidence for the year ahead.”
