Investing.com -- Jean Paul Gaultier owner Puig Brands SA (BME:PUIGb) posted a rise in third-quarter revenue, bolstered by strong demand for fragrances despite a challenging backdrop for the beauty industry.
The Spanish company posted revenue of €1.26 billion ($1.36 billion) for the quarter, marking an approximate 11% increase year-over-year in reported terms. This result surpassed analysts' expectations of €1.17 billion, as compiled by Visible Alpha.
The company’s shares surged more than 10% in European trading Wednesday.
Puig’s CEO and Chairman, Marc Puig, noted that fragrances continued to outperform in the premium beauty market, seeing accelerated growth despite complexities in the sector.
Revenue on a like-for-like basis rose nearly 12% from the previous year.
Puig, which also owns brands like Paco Rabanne and Carolina Herrera, reported that its fragrance and fashion segment—which represents the majority of its revenue—grew by about 11% year-over-year.
The skincare division experienced significant gains with sales up around 19%, while makeup returned to positive growth.
Sales in Puig's primary region, covering Europe, the Middle East, and Africa, rose by 14%, while growth in the Americas was supported by strong demand for fragrance and makeup in the U.S.
In Asia-Pacific, Puig’s revenue increased by 1% for the quarter, reflecting continued market challenges.
Puig reaffirmed its outlook for stable adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin this year, with the potential for improvement in the medium term.
The company also maintained its long-term guidance of high-single-digit like-for-like revenue growth, ahead of trends in the premium beauty sector.