Make-up boosts Puig in third quarter while skincare declines

Puig has closed the third quarter of 2026 with its highest reported growth rate since early 2025, driven by a make-up category gaining weight within the group and held back by a skincare segment recording its second consecutive negative quarter. This follows from the sales update published on Wednesday by the company and explanations provided by its management during the subsequent analyst call.

According to these figures, make-up, which accounts for just a fifth of sales, has generated as much like-for-like growth as fragrances and fashion, which represents more than 70 percent of revenue.

The Spanish fashion and beauty multinational, which owns Carolina Herrera, Rabanne and Jean Paul Gaultier, generated revenue of 1.39 billion euros (1.56 billion dollars) between July and September, up +7.2 percent year-over-year.

At constant perimeter and exchange rates, sales grew by +5.6 percent, surpassing the 4.7 percent recorded in the first quarter and the 4.1 percent in the second. The reported figure exceeds the LFL result due to currency effects, which added 22 million euros this time. In the first half of the year, conversely, a weaker dollar had reduced revenue by -2.1 percent.

The YoY comparison is also relevant. In the third quarter of 2025, Puig had grown by +3.17 percent in reported terms, its slowest pace since its initial public offering, affected by stagnation in fragrances and fashion and falling sales in the Americas. The current improvement must therefore be viewed in light of both business acceleration and a less demanding comparative base.

Make-up gains momentum and skincare slows down

The “Make-up” division generated 269.7 million euros in the quarter, up +16.1 percent at constant perimeter and exchange rates, compared to +9.2 percent and +9.1 percent in the previous two quarters. Consequently, the category increased its share to 19.4 percent of the group's quarterly sales. During the analyst call, management attributed this progress primarily to sell-out performance and market share gains, with innovation serving as a key driver.

This was supported by new points-of-sale, including around 30 doors in Boots, new openings with Sephora in several European markets and the completion of the Ulta rollout. However, the company itself described these distribution gains as modest. Charlotte Tilbury, the cornerstone of the segment, is a brand in which Puig increased its stake to nearly 85 percent this year. Looking ahead to the fourth quarter, management warned of a tough comparative base, as make-up grew by +26.5 percent in the same period of 2025.

Fragrances and fashion, which accounts for 71 percent of quarterly revenue, brought in 985.8 million euros, representing an increase of +3.9 percent at constant perimeter and exchange rates. Among the milestones of the period, the company highlighted the tenth anniversary of Carolina Herrera's Good Girl during New York Fashion Week and a Dries Van Noten spring/summer 2027 runway show that it did not hesitate to describe as “among the top ten of the season”.

Skincare recorded its second consecutive negative quarter. Its sales fell by -0.8 percent at constant perimeter and exchange rates to 135.3 million euros, following -0.3 percent in the second quarter and +4.7 percent in the first. Puig stated that its dermo-cosmetics brands achieved double-digit growth in the first nine months, although the segment as a whole only advanced by +1.3 percent at constant perimeter and exchange rates during that period.

Management explained that the division is moving at two speeds. Dermo-cosmetics, led by Uriage, maintained double-digit growth. Meanwhile, premium skincare, represented by Charlotte Tilbury and Dr. Barbara Sturm, weighed on the segment, mainly due to North America.

Despite this decline, management assured during the call that the company remains strongly committed to skincare. In dermo-cosmetics, this commitment centres on Isdin, a brand that Puig agreed to acquire in full for 1.2 billion euros in September. In the premium segment, it is relying on its innovation pipeline for Charlotte Tilbury and Dr. Barbara Sturm, with the latter focused on the US market.

Asia-Pacific moderates, Americas rebounds

By region, the Americas recorded its best quarter of the year, with sales of 506.7 million euros and LFL growth of +6.2 percent. This improvement surpasses the increases of +2 percent in the first quarter and +3.2 percent in the second, marking a recovery from the weakness seen in previous periods.

EMEA, the group's main market, generated 727.5 million euros, up +3.8 percent at constant perimeter and exchange rates. Asia-Pacific maintained the highest regional growth, with an increase of +12.9 percent and sales of 156.5 million euros. However, the pace continued to moderate after growing by +26.1 percent in the first quarter of 2026 and +16.1 percent in the second.

Overall, Puig accumulated sales of 3.74 billion euros between January and September, up +4.1 percent in reported terms and +4.8 percent at constant perimeter and exchange rates. The cumulative currency impact was negative, reducing reported growth by -0.7 percent.

Puig is maintaining its guidance for 2026, aiming to grow ahead of the premium beauty market at constant perimeter and exchange rates while keeping its adjusted EBITDA margin stable. Furthermore, it remains committed to keeping net debt below two times adjusted EBITDA and distributing around 40 percent of net profit in dividends. Unlike in 2025, when it set a growth target range of between 6 and 8 percent, the company has not provided a numerical target for this financial year.

Further details will be shared on October 28 in Madrid, where Puig will host its Capital Markets Day.