(Bloomberg) -- Puig Brands SA shares fell to touch their lowest level since the Spanish beauty firm went public in May after its Charlotte Tilbury brand withdrew some batches of a setting spray product.
Charlotte Tilbury is conducting a global voluntary withdrawal for select batches of its Airbrush Flawless Setting Spray after routine product testing found “an isolated quality issue” in a limited number of batches, the company said in a statement after European markets closed on Thursday. This doesn’t make the product unsafe, Puig said.
The stock dropped as much as 9% to an intraday low of €17.90, taking losses since its initial public offering to 27%. Shares partially recovered, closing Friday down 3.5% at €18.99.
Citigroup Inc. analysts including Danping Liu estimated that the affected products make up around 5% of sales in Puig’s makeup division.
“Although the company is still confident in achieving its 2024 and mid-term guidance, we see low-single-digit consensus earnings per share downgrade due to this withdrawal,” the Citi analysts wrote in a note.
(Updates stock move in headlines, chart and third paragraph.)
©2024 Bloomberg L.P.