Puig shares hit new lows as Bank of America cuts rating

Madrid – Puig has taken another hit on the stock market, with its shares slipping below 14 euros and hovering around 13 euros per share. The drop underscores how far the Spanish fashion and beauty company has fallen since its May 2024 IPO, when it debuted at 24.50 euros per share.

The decline comes despite strong half-year results published in early September. Puig reported revenue of 2.299 billion euros (+5.9 percent) and net profit of 280.9 million euros (+79.1 percent). Yet, the stock still lost nearly 7 percent in a single trading day on September 10, falling from 15 to 14 euros and closing at 14.79 euros.

By Monday, September 29, shares dropped as low as 13.62 euros before closing at 13.89 euros — the lowest closing value since the IPO. The slide continued the next day, with shares opening at 13.85 euros, dipping yesterday Tuesday, September 30 to 13.65, and closing at 13.68 euros. At these levels, Puig has lost more than 43 percent of its market value compared to its IPO price.

The latest turbulence followed Bank of America’s downgrade of Puig from “buy” to “neutral” and a price target cut from 18 to 15 euros.

BofA also lowered its outlook for French beauty group Interparfums — owner of Rochas and licensee of Lanvin and Off-White fragrances — downgrading it from “neutral” to “underperform” and slashing its price target from 35 to 25 euros.

The bank pointed to weakening demand in the fragrance and beauty sector, particularly in Europe, Puig’s key market. Retailers clearing stock, slowing exports, and fewer product launches are among the warning signs.

Despite the sector headwinds, Puig continues to push forward with new launches. Just last week in Madrid, the company unveiled “La Bomba,” the latest Carolina Herrera fragrance, during the brand’s runway show — its first ever staged outside the United States.

Originally published on FashionUnited.ES by Jaime Martínez, this article has been adapted for an international audience by Alicia Reyes Sarmiento.