Puig (BME:PUIG) Is Up 6.3% After Raising Guidance on Makeup Momentum and U.S. Online Strength

• Puig Brands reported a 6.1 percent increase in like-for-like sales in its third quarter, driven by strong makeup and skincare segment performance, as softness continued in the fragrance division.
• Momentum in premium brands such as Charlotte Tilbury, particularly in the U.S. online market, prompted the company to raise its full-year revenue growth guidance to the midpoint of its previously stated range.
• We’ll explore how Puig’s raised outlook, supported by the success of its makeup segment, shapes its current investment narrative.

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What Is Puig Brands' Investment Narrative?

If you’re eyeing Puig Brands, the biggest bet is on continued demand for premium beauty and a successful blend of powerhouse makeup brands, like Charlotte Tilbury, with its historic fragrances. The Q3 update that prompted higher full-year revenue guidance spotlights makeup as Puig’s short-term growth pillar, easing concern around recent fragrance softness. This tilt toward digital and the U.S. market could influence near-term momentum and help sustain recent sales gains, but it doesn’t erase bigger risks. With its board still relatively fresh and recent share price underperformance, the main question is whether robust makeup trends can fully offset ongoing pressure in fragrances and any potential volatility as the lock-up period nears an end. Intrigue remains around the board's limited experience and how sustained shifts in brand demand might sway 2025’s trajectory. In contrast, a board with short tenure may present distinct uncertainties that investors should be aware of.

Puig Brands' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Six different Simply Wall St Community fair value estimates for Puig Brands span from €12.98 to €23, reflecting wide differences in individual retail investor views on what the stock might be worth. Uncertainty about the board’s experience is front of mind, giving further reason to compare these perspectives before drawing any conclusions.

Explore 6 other fair value estimates on Puig Brands - why the stock might be worth 13% less than the current price!

Build Your Own Puig Brands Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Puig Brands research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Puig Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Puig Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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