Recently, Puig, the Spanish beauty and fashion conglomerate that went public in Madrid in May, faced a setback following the withdrawal of certain batches of its popular Charlotte Tilbury setting spray. The company announced that while the issue would impact its makeup segment’s performance, it was not expected to have a “material” effect on its overall financial results for the year.
The withdrawal was prompted by routine testing that identified an isolated quality issue in a limited number of batches. Puig emphasized that the products were not unsafe, and no other Charlotte Tilbury items were affected. Charlotte Tilbury, renowned for its “Pillow Talk” collection, ranked among Puig’s top three brands in 2023, contributing 18% of the company’s net income through makeup sales.
JPMorgan analysts estimate the recall could dent like-for-like makeup growth by mid-single digits in the fourth quarter, with potential spillover effects into early 2025, depending on the speed of product replacement. Despite the setback, Puig reaffirmed its confidence in achieving its 2024 targets, including maintaining a stable EBITDA margin year-over-year.
The news caused Puig’s shares to drop by as much as 9% before regaining some ground.
