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While it continues to explore a potential merger with its American competitor Est\u00e9e Lauder<\/b>, Puig slowed down in the first quarter of 2026<\/b>.<\/p>\n
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With organic growth of +4.7% (+0.8% reported)<\/b> to \u20ac1.2 billion, the Catalan beauty and fashion group has once again outperformed the beauty market<\/b>, marking its eighth consecutive quarter of doing so\u2026<\/p>\n
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It also beat the expectations of J.P. Morgan<\/b> analysts, who had not anticipated organic growth of more than 2.2% during the first three months of 2026.<\/p>\n
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Its adjusted EBITDA margins are expected to remain stable, in line with 2025 levels at 20.7% of net revenue.<\/p>\n
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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\u2019Artisan Parfumeur, Penhaligon\u2019s<\/strong>\u2026).<\/p>\n <\/p>\n As a reminder, in 2025, Puig reported a 5.3% increase in revenue (+7.8% on a comparable basis) to \u20ac5.04 billion. And in the fourth quarter, its comparable growth, driven by makeup, soared by +9.8% to \u20ac1.45 billion.<\/p>\n <\/p>\n <\/p>\n But the group is now operating in a tougher environment<\/b> for the luxury and beauty market, particularly in fragrances, its main specialty<\/b>, which accounts for 74% of its revenue (including fashion).<\/p>\n <\/p>\n Its Fragrances and Fashion<\/b> division thus saw growth (+3.9% on a comparable basis, +0.1% on a reported basis)<\/strong> to \u20ac897.2 million, a less robust performance than that of Makeup (+9.2% and +3.3%<\/b> to \u20ac170.8 million) and Skincare (+4.7% and +2.1%<\/b> to \u20ac147.3 million). Makeup, for its part, was driven by Charlotte Tilbury<\/b>, while Uriage<\/b> and Apivita<\/b> fueled the momentum in Skincare.<\/p>\n <\/p>\n Regionally, Puig continued to perform exceptionally well in Asia-Pacific<\/b>, albeit its smallest market. Driven by niche fragrances and Charlotte Tilbury, the region posted like-for-like growth of +26.1% (+17.9%<\/b> on a reported basis) to \u20ac131 million.<\/p>\n <\/p>\n <\/p>\n The EMEA and Americas<\/b> regions, however, saw growth stall, with growth of +3% and +1.9%<\/b> to \u20ac656 million for the former and +2% (-5% on a reported basis)<\/b> to \u20ac428.3 million in the Americas. They were indeed impacted by macroeconomic conditions and currency effects.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n Puig remains attentive to how the situation evolves, anticipating an impact of approximately 1% in the first half of the year<\/b> should the conflict continue.<\/p>\n <\/p>\n With a travel retail channel estimated<\/b> by analysts at about one-tenth of its sales<\/b>, Puig is among the beauty players most vulnerable to fluctuations in international traveler traffic at airports\u2026<\/p>\n <\/p>\n Puig\u2019s management nevertheless sought to reassure investors and affirmed that it is managing the situation effectively.<\/p>\n <\/p>\n <\/p>\n The group has also confirmed its forecasts for 2026<\/b>, 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%<\/b>. Puig also anticipates stabilized adjusted EBITDA margins<\/b>, despite a challenging cost environment, particularly regarding logistics.<\/p>\n <\/p>\n To achieve this, it plans to focus on cost discipline and prioritizing investments.<\/b><\/p>\n <\/p>\n These investments are expected to focus primarily on strategic fragrance launches<\/b> (a new women\u2019s fragrance, new scents from Jean Paul Gaultier<\/b>, innovations for 1 Million and Invictus (Rabanne<\/b>), and the expansion of major markets, particularly in the APAC region, which currently accounts for only 11% of its sales.<\/p>\n <\/p>\n <\/p>\n Finally, Puig\u2019s future could be linked to that of Est\u00e9e Lauder<\/b>.<\/p>\n <\/p>\n Last March, the two beauty specialists confirmed that discussions were underway to combine their respective strengths in a more constrained global beauty market.<\/p>\n <\/p>\n Jose Manuel Albesa,<\/b> appointed last March as the new CEO to replace Marc Puig, who remained Executive Chairman<\/b>, explained that merger discussions were still \u201congoing.\u201d<\/p>\n <\/p>\n But on April 28, according to the group, no final decision had yet been made<\/b> and no guarantees were given regarding the conclusion of an agreement or its terms…<\/p>\n <\/p>\nA Tougher Environment for Fragrances<\/h2>\n
Slowdown in EMEA and the Americas<\/h2>\n
2026 Forecasts Confirmed<\/h2>\n
Negotiations still underway with Est\u00e9e Lauder<\/h2>\n