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 make-up 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.