Jefferies | A solid fourth quarter for Puig Brands (PUIG). The unclear outlook could influence the extent to which investors regain interest in the shares, but we believe that they continue to outperform their competitors at present. All three segments met the 6-8% forecast for fiscal year 2025, initially set in February 2025. Fragrances grew 1.3 times faster than the luxury category in fiscal year 2025, with 6.4% LFL in fiscal year 2025. The makeup segment stood out, with 13.7% year-on-year growth, thanks to the inventory load from Charlotte Tilbury AMZN that still remained in the fourth quarter.
With a P/E ratio of 14.5 times, we believe the stock will re-rate to 17.5 times NTM. Buy.
Strong Q4 2025 results and margin guidance for this year better than feared. However, we expect more vague guidance for FY 2026 to somewhat dampen the stock’s outperformance.
Key figures and context:
The group’s OSG in the fourth quarter of 2025 was 9.8% (VA cons 6.2%, JEFe 6.4%).
The operating margin for fiscal year 2025 was 16.1%, up 30 bps from the previous year (VA cons down 10 bps, JEFe up 20 bps).
Earnings per share for fiscal year 2025 were €1.04, up 6.1% from the previous year (VA cons up 2.9%, JEFe up 4.4%).
