Puig Suffers Major Losses in 2020

Puig, a family-owned beauty and fashion company, closed 2020 with a loss. Reported net sales totaled €1.54 billion ($1.86 billion), a 32% decrease on a like-for-like basis compared to 2019.
 
The decline was largely due to the impact of the COVID-19 pandemic. Lockdown and social distancing measures reduced perfume and fashion consumption, while the company’s business customers all over the world started to close down: perfumeries, department stores, airport shops and shopping malls.
 
“January and February were record months for us, and then all of a sudden — boom,” remarked Marc Puig, the company’s chairman and chief executive officer.
 
In the 12 months ended Dec. 31, 2020, the Barcelona-based group posted a net loss of 70 million euros, versus a gain of 226 million euros in 2019.
 
Despite the setbacks, the company expects its business to get back on track in the near future. Puig aims to double sales in 2023 and triple them in 2025. The plan is based on forecasts of significant growth through promotion of the digital channel and an increase in revenues in Asia, which will represent 30% and 25% of sales, respectively, in 2025.