Puig smiles again. Puig's shares regain momentum and climb positions on the Ibex 35. As indicated by the media outlet Cinco Días, Puig has managed to regain top positions on the Ibex 35 thanks to sales from the luxury brand Burberry.
Investment bank Goldman Sachs has improved its valuation for the company and anticipates a 27% potential upside from Puig's current stock prices of around 15.8 euros.
“We expect a solid close to fiscal year 2025 ahead of the February 18 results,” the bank explains in its report. “We anticipate organic sales growth of 6.3% in the fourth quarter, in line with the consensus, which stands at 6.2%.”
According to the report, Goldman Sachs has indicated that it estimates 4% growth in Fragrances and Fashion, led especially by the Carolina Herrera brand, with a 14% increase as it overcomes last year's product withdrawals, and Skincare is estimated to register a 10% increase. In the same note, Goldman Sachs estimates that the company will register adjusted Ebitda margins (earnings before interest, taxes, and amortization) of 20.4% in fiscal year 2025, "backed by better absorption of fixed costs in Makeup and Skincare."
Burberry shoots Puig
Burberry sales advanced during the key Christmas period as shoppers snapped up the British brand's tartan scarves and trench coats, particularly in China, bolstering hopes for a luxury sector recovery. Comparable store sales rose 3% in its fiscal third quarter to December 27, Burberry Group reported on Wednesday, beating analysts' estimates
China, a crucial market for luxury brands, saw a 6% increase in sales, doubling the growth of the previous quarter thanks to demand from Gen Z customers, as announced by the company itself and reported by Bloomberg.