Puig Shares Drop after Withdrawal of Some Batches of Charlotte Tilbury Spray

A woman walks past the logo of Luxury beauty and fashion company Puig (PUIG.MC) at the entrance of its headquarters in Barcelona · Reuters
A woman walks past the logo of Luxury beauty and fashion company Puig (PUIG.MC) at the entrance of its headquarters in Barcelona · Reuters
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Puig Shares Drop after Withdrawal of Some Batches of Charlotte Tilbury Spray

A woman walks past the logo of Luxury beauty and fashion company Puig (PUIG.MC) at the entrance of its headquarters in Barcelona · Reuters
A woman walks past the logo of Luxury beauty and fashion company Puig (PUIG.MC) at the entrance of its headquarters in Barcelona · Reuters

Shares in Puig dropped sharply in early Friday trade after the luxury beauty and fashion company said its Charlotte Tilbury brand was voluntarily withdrawing select batches of its make-up setting spray.
Puig, which listed in Madrid in May, said on Thursday the withdrawal was expected to impact performance of its makeup segment, but was not expected to have a "material" impact on its overall full-year performance.
The company said that a routine product testing found an isolated quality issue in a limited number of batches, which did not make the product unsafe.
It added that no other Charlotte Tilbury products were affected.
Makeup and skincare brand Charlotte Tilbury, known for its "Pillow Talk" make-up collection, was one of Puig's top three brands last year, according to its annual report.
Makeup contributed 18% of its net income in 2023, while skincare accounted for 10%.
JPMorgan analysts said the withdrawal could have as much as mid single digit additional impact on makeup like-for-like growth in the fourth quarter.
They added there could be a potential spillover into the first quarter of 2025, depending on the speed of product replacement.
The firm, which also owns perfume brands Rabanne, Carolina Herrera and Jean Paul Gaultier, said it was confident in achieving its goals for 2024, including a stable EBITDA margin compared with 2023.
Shares fell as much as 9% but recovered some losses and by 0902 GMT were down 3.5%, among top fallers on the Europe-wide STOXX 600 index.



Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo

Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said.
The company is exploring this option to facilitate its IPO, one of the people said, according to Reuters.
If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule.
Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing.
However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week.
The people declined to be identified as they were not authorized to speak to the media.
Shein declined to comment.
Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's $2.9 billion deal, according to Dealogic.
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known.
London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time.
In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers.
Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from US lawmakers.
Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research.