Puig shares drop following Charlotte Tilbury makeup setting spray withdrawal
Puig’s shares have dropped after the company withdrew batches of its Charlotte Tilbury brand setting spray due to a quality issue.
The shares fell by as much as 9% in early trading on Friday, hitting their lowest price since the company’s initial public offering in May. The company ended the day with its shares down 3.4% to €18.99 (US$19.99).
The Barcelona-based group’s shares ended Monday at €19.45 (US$20.48), a 2.4% gain from Friday’s close. However, they were still 20.6% below their initial trading level.
Puig says it expects the move to impact the performance of its makeup business but not its overall full-year performance.
Financial repercussions
Charlotte Tilbury is carrying out a “global voluntary withdrawal” of selected batches of its Airbrush Flawless Setting Spray after a routine product testing identified an “isolated quality issue in a limited number of batches.”
Puig says that the issue does not make the product unsafe and that none of the brand’s other products are affected.
According to its annual report, the makeup brand was one of Puig’s top three performers last year.
Makeup contributed 18% of its net income in 2023, while skin care accounted for 10%. The group also owns luxury brands such as Jean Paul Gaultier and Rabanne.
According to Reuters, JPMorgan analysts predict the withdrawal could have a mid-single-digit additional impact on makeup like-for-like growth in the fourth quarter.
The financial services firm added that, depending on the speed of product replacement, there could be a potential spillover into the first quarter of 2025.
Last month, Drunk Elephant voluntarily recalled specific batches of its skin care products after accidentally switching surfactants and preservatives and finding two unlisted ingredients in the formulations. The company urged customers to stop using the affected products immediately and return them for a refund or replacement, as the mix-up could cause skin reactions and infections.
