Spanish fashion and perfume giant Puig expect a double-digit increase in sales this year as consumers continue to splurge on perfumes even as inflation keeps them from spending on discretionary items.
Even in 2022, the company observed a double-digit increase, with sales reaching $3.92 billion as demand for its products surged following the worst of the pandemic. In the same year, its share of the overall global fragrance market reached 10% for the first time. Meanwhile, its profit margin jumped by 71% to $431.7 million as the company raised prices to keep up with inflation.
By 2025, the Paco Rabanne and Carolina Herrera fragrance maker project its sales to hit $4.8 billion as consumers are expected to continue to spend money on beauty and fragrance products.
The company plans to focus on growing its business in Asia even though the United States, Britain and Spain will continue to be its core markets, according to Reuters. In 2022, Asia accounted for 10% of its sales.
In addition, the company reportedly plans to focus on building skincare and makeup brands in niche markets.
“We are optimistic about the future…sales of this type of products have proven to be resilient to economic risks,” said Chairman and CEO Marc Puig.