Puig Slows Down in the First Quarter

While in talks with U.S.-based Estée Lauder regarding a potential merger, the Catalan beauty group saw its growth slow in early 2026, held back by its Fragrances division. However, it is still maintaining its annual targets.

While it continues to explore a potential merger with its American competitor Estée Lauder, Puig slowed down in the first quarter of 2026.

With organic growth of +4.7% (+0.8% reported) to €1.2 billion, the Catalan beauty and fashion group has once again outperformed the beauty market, marking its eighth consecutive quarter of doing so…

Better than the market and analysts’ expectations

It also beat the expectations of J.P. Morgan analysts, who had not anticipated organic growth of more than 2.2% during the first three months of 2026.

Its adjusted EBITDA margins are expected to remain stable, in line with 2025 levels at 20.7% of net revenue.

Nevertheless, this first quarterly growth figure for 2026 is also the weakest since the COVID-19 pandemic for the group, which boasts a broad portfolio of luxury and niche brands and licenses (Jean Paul Gaultier, Carolina Herrera, Rabanne, Nina Ricci, Christian Louboutin, Banderas, Adolfo Dominguez, Byredo, Charlotte Tilbury, L’Artisan Parfumeur, Penhaligon’s…).

As a reminder, in 2025, Puig reported a 5.3% increase in revenue (+7.8% on a comparable basis) to €5.04 billion. And in the fourth quarter, its comparable growth, driven by makeup, soared by +9.8% to €1.45 billion.

A Tougher Environment for Fragrances

But the group is now operating in a tougher environment for the luxury and beauty market, particularly in fragrances, its main specialty, which accounts for 74% of its revenue (including fashion).

Its Fragrances and Fashion division thus saw growth (+3.9% on a comparable basis, +0.1% on a reported basis) to €897.2 million, a less robust performance than that of Makeup (+9.2% and +3.3% to €170.8 million) and Skincare (+4.7% and +2.1% to €147.3 million). Makeup, for its part, was driven by Charlotte Tilbury, while Uriage and Apivita fueled the momentum in Skincare.

Regionally, Puig continued to perform exceptionally well in Asia-Pacific, albeit its smallest market. Driven by niche fragrances and Charlotte Tilbury, the region posted like-for-like growth of +26.1% (+17.9% on a reported basis) to €131 million.

Slowdown in EMEA and the Americas

The EMEA and Americas regions, however, saw growth stall, with growth of +3% and +1.9% to €656 million for the former and +2% (-5% on a reported basis) to €428.3 million in the Americas. They were indeed impacted by macroeconomic conditions and currency effects.

In the EMEA region, all eyes are naturally on the Middle East. The conflict there is reported to have already had a negative impact estimated by the group at approximately 1.2%, linked more to disruptions in Travel Retail activity than to its local markets. Performance in Dubai and Saudi Arabia is reportedly mixed.

Puig remains attentive to how the situation evolves, anticipating an impact of approximately 1% in the first half of the year should the conflict continue.

With a travel retail channel estimated by analysts at about one-tenth of its sales, Puig is among the beauty players most vulnerable to fluctuations in international traveler traffic at airports…

Puig’s management nevertheless sought to reassure investors and affirmed that it is managing the situation effectively.

2026 Forecasts Confirmed

The group has also confirmed its forecasts for 2026, aiming to continue outperforming the luxury beauty market, without specifying by how much. According to analysts, organic growth is expected to be around +4.5%. Puig also anticipates stabilized adjusted EBITDA margins, despite a challenging cost environment, particularly regarding logistics.

To achieve this, it plans to focus on cost discipline and prioritizing investments.

These investments are expected to focus primarily on strategic fragrance launches (a new women’s fragrance, new scents from Jean Paul Gaultier, innovations for 1 Million and Invictus (Rabanne), and the expansion of major markets, particularly in the APAC region, which currently accounts for only 11% of its sales.

Negotiations still underway with Estée Lauder

Finally, Puig’s future could be linked to that of Estée Lauder.

Last March, the two beauty specialists confirmed that discussions were underway to combine their respective strengths in a more constrained global beauty market.

Jose Manuel Albesa, appointed last March as the new CEO to replace Marc Puig, who remained Executive Chairman, explained that merger discussions were still “ongoing.”

But on April 28, according to the group, no final decision had yet been made and no guarantees were given regarding the conclusion of an agreement or its terms…