Sales: $1.3 billion
Marc Puig, chairman and chief executive officer; Manuel Puig, vice chairman
Fragrances—Paco Rabanne, Carolina Herrera, Prada, Adolfo Dominquez, Antonio Banderas; Cosmetics and personal care—Payor, Unica, Vitesses, Payot, Única, Vitesse, Heno de Pravia, Lactovit, Maja, Tresemmé (distributor)
Ricci Ricci, CH Men, L’Eau Ambrée, Seduction in Black and Lady Mango fragrances
Corporate sales fell 5% last year, while fragrance sales were off 3.5%. Still, Puig maintains that it increased its market share in the global prestige fragrance sector to more than 6%. Furthermore, more than 50% of revenues are derived from products that did not exist five years ago.
Last year, fragrances represented 83% of net revenues. Cosmetics and personal care, with brands such as Payot and Maja and the distribution of Tresemmé in Spain and Portugal, generated 12% of revenues.
Although fragrance sales slipped last year, Paco Rabanne recorded a 20% increase in sales, thanks to the success of 1 Million, which debuted in 2008. According to Puig, 1 Million is the second most popular men’s fragrance worldwide, excluding the U.S., where this line has not yet been launched. The brand plans to launch Lady Million this September.
Another strong performer in the perfumery sector is Ricci Ricci by Nina Ricci, which reached the top 10 in the French market during the holiday selling season. Other successful launches included CH Men by Carolina Herrera, which enabled the brand to consolidate its leadership in Latin America and maintain its global market share, and l’Eau Ambrée by Prada.
Sales for the first four months of 2010 represent growth of 24% over last year, driven by the recovery of certain international markets, the success of recent years’ launches and the end of the inventory reduction process carried out by customers, particularly in the first quarter of 2009. Sales in Spain, which account for 25% of Puig’s sales, rose 9% during the period.
Looking ahead, Puig hopes to maintain double-digit gains for the remainder of 2010 and is looking forward to incorporating the Valentino brand into its portfolio. The agreement, effective Feb. 1, 2011, represents the start of a long-term association between the two companies. As a result, Puig expects to focus on fewer but stronger brands and create long-term projects in an effort to expand its share in the global perfumery, fashion and cosmetics sector.