One of Europe's richest families searches for answers as they lose billions
Shares of Puig, owner of brands like Jean Paul Gaultier and makeup label Charlotte Tilbury, had tumbled more than 34 per cent since its splashy listing as Europe's biggest IPO in 2024. They rose as much as 2 per cent in Madrid on Monday.
'Over time we'll consider whether or not it makes sense to make any moves to help investors who have invested in the stock achieve the value they believe it deserves,' Marc Puig said in an interview, referring to a possible family led stock purchase or ways to increase the liquidity of its shares. 'No moves are planned in the short term.'
The Puigs are among Europe's wealthiest families. They own Exea Empresarial, which controls 74 per cent of Puig's capital and 93 per cent of its voting rights. The family's fortune has shrunk about 19 per cent from just before the shares began trading to $US9.7 billion ($14.9 billion), according to the Bloomberg Billionaires Index. The decline stemmed largely from the drop in the company's stock.
Puig shares have tumbled like those of others in the industry including L'Oreal and LVMH as they suffer from uncertainty over the effects of US President Donald Trump's tariff wars and concerns about sluggish consumer demand. For Puig, the decline has come even though it has consistently met targets.
Loading
'I don't feel like we've let anyone down,' Puig said. 'We've delivered, we continue to grow.'
Most analysts have a 'buy' recommendation on the stock. 'So far everything they've promised has happened,' said Xavier Brun, Head of Equity at Trea Asset Management, which holds Puig shares.
On Wednesday, the company reiterated its forecast of 6 per cent to 8 per cent organic sales growth for the year, even after factoring in a 20 per cent US tariff on Europe-made products. Trump has threatened 30 per cent tariffs on products from the European Union. Puig said it expected little impact from the trade war in 2025 since most of the products are already in the US.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Australian
13 minutes ago
- The Australian
Dollar rises on EU-US trade deal but European stocks turn sour
The dollar jumped Monday on the back of the US-EU trade deal struck on the weekend, but European stock markets dipped, reflecting unease at terms viewed as lopsided. New York's main indices were mixed, with the Dow opening lower, while the broader S&P 500 rose, and the tech-heavy Nasdaq extended its bullish run. In Europe, Paris and Frankfurt dipped, wiping out early gains. London -- which is outside the EU -- also slid. The European Commission defended the deal it negotiated on behalf of the bloc as "better than a trade war with the United States" -- and better than the 30 percent tariffs President Donald Trump had been threatening. But several EU countries expressed unhappiness with the agreement's 15 percent tariffs on most EU exports to the United States -- but with no extra ones on US goods entering the EU. French Prime Minister Francois Bayrou slammed the deal as a "dark day" for Europe. Spanish Prime Minister Pedro Sanchez said he backed it, but "without any enthusiasm". "While the deal has avoided a much worse outcome for now, it remains to be seen whether it will last," cautioned Jack Allen-Reynolds, a eurozone economist at Capital Economics. He said average US tariffs on EU imports would now rise to around 17 percent, up from 1.2 percent last year. "We think this will reduce EU GDP by about 0.2 percent." Oil prices rose strongly on relief that Washington's tariffs on the EU -- the world's second-biggest economy, whose bilateral trade with the United States amounts to $1.9 trillion a year -- were contained. "Investors expect reduced tariffs will support global growth and, in turn, lift energy demand," said David Morrison, senior market analyst at Trade Nation. Trump will likely point to the money raised from the tariffs, Morrison said, "but the big question is who pays the extra tax, and how will that affect future trade and consumer spending?" While there was relief that uncertainty had been reduced by the deal, Allen-Reynolds said Trump's volatility meant it had not been removed. "President Trump could still change his mind even after the deal has been finalised and signed," he said. "So uncertainty is likely to remain high for the foreseeable future." - US-China talks - Trump has set a baseline 10-percent tariff on imports for most other US trading partners, and higher ones on others, including China. Monday saw the start of a fresh round of trade negotiations between China and the United States ahead of the end of a 90-day truce between the economic superpowers. An April agreement brought down triple-digit tariffs each country had imposed on the other, to a level of 30 percent for China's exports to the United States, and 10 percent for US ones to China. But that accord runs out on August 12. Shares in European companies tracked the unease at the EU-US deal. Volkswagen, BMW and Porsche all lost more than three percent, and Germany's main auto industry group, the VDA, warned the 15 percent tariff "burdens" EU carmakers. As part of the deal, Trump said the 27-nation bloc had agreed its companies will purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments. In Paris, shares in Pernod Ricard, which exports wine and spirits to the United States, fell more than three percent. "There remains a prevailing sense that the agreement does not constitute a significant win," said Jochen Stanzl, Chief Market Analyst at CMC Markets. Traders were prepared for a busy week in the United States, with a slew of corporate earnings reports -- including from Apple, Microsoft, Meta and Amazon -- and macro data readings coming their way giving indications about US jobs and growth. The Federal Reserve is expected to keep interest rates unchanged at its meeting this week, with investors focused on its outlook for the rest of the year given Trump's tariffs and recent trade deals. - Key figures at around 1545 GMT - New York - Dow: DOWN 0.1 percent at 44,878.84 points New York - S&P 500: UP 0.1 percent at 6,397.02 New York - Nasdaq Composite: UP 0.3 percent at 21,178.79 London - FTSE 100: DOWN 0.4 percent at 9,082.95 Paris - CAC 40: DOWN 0.1 percent at 7,828.43 Frankfurt - DAX: DOWN 0.6 percent at 24,080.06 Tokyo - Nikkei 225: DOWN 1.1 percent at 40,998.27 (close) Hong Kong - Hang Seng Index: UP 0.7 percent at 25,562.13 (close) Shanghai - Composite: UP 0.1 percent at 3,597.94 (close) Euro/dollar: DOWN at $1.1638 from $1.1738 on Friday Pound/dollar: DOWN at $1.3418 from $1.3431 Dollar/yen: UP at 148.19 yen from 147.68 yen Euro/pound: DOWN at 86.72 pence from 87.40 pence Brent North Sea Crude: UP 2.7 percent at $69.44 per barrel West Texas Intermediate: UP 2.8 percent at $66.94 per barrel bur/rmb/rl
The Australian
30 minutes ago
- The Australian
EU defends Trump trade deal facing backlash
The European Union on Monday vehemently defended its trade deal with President Donald Trump, with EU capitals and businesses sharply divided on an outcome some branded a "capitulation". "I'm 100 percent sure that this deal is better than a trade war with the United States," top EU trade negotiator Maros Sefcovic told journalists. European Commission President Ursula von der Leyen clinched the framework accord with Trump Sunday after dashing to Scotland as the August 1 deadline loomed for steep levies that threatened to cripple Europe's economy. EU exports are now set to face across-the-board tariffs of 15 percent -- higher than customs duties before Trump returned to the White House, but much lower than his threatened 30 percent. The 27-nation bloc also promised its companies would purchase energy worth $750 billion from the United States and make $600 billion in additional investments -- although it was not clear how binding those pledges would be. "This is clearly the best deal we could get under very difficult circumstances," Sefcovic said. Full details of the agreement -- and crucially which sectors could escape the 15-percent levy -- will be known in coming days, although the EU says it has avoided steeper tariffs on key exports including cars and medicines. But the reaction from European capitals -- which gave von der Leyen the mandate to negotiate -- ranged from muted to outright hostile. French Prime Minister Francois Bayrou said it was a "dark day" for Europe and said the accord was tantamount to "submission". Speaking for Europe's biggest economy, German Chancellor Friedrich Merz gave a warmer welcome to a deal he said had avoided "needless escalation". Industry groups in both countries made plain their disappointment however, with Germany's main auto sector body saying the 15-percent levy "burdens" carmakers while its VCI chemical trade association said the rates were "too high". Hungary's Prime Minister Viktor Orban attacked the deal in blunt terms, saying "Trump ate Ursula von der Leyen for breakfast". - 'Not only about trade' - "It looks a bit like a capitulation," said Alberto Rizzi of the European Council on Foreign Relations (ECFR). "The EU accepted a fairly unbalanced deal," he added, saying it delivered a "political victory for Trump". Von der Leyen had faced intense pressure from EU states to strike a deal quickly with the bloc's biggest partner and protect a $1.9-trillion trading relationship. Defending Brussels' approach, Sefcovic warned that a no-deal scenario -- meaning a 30-percent tariff and the prospect of further escalation -- would have risked up to five million jobs in Europe. Throughout the months-long talks, Brussels prioritised stability and maintaining good relations with Washington, over escalation. That line of thinking has support: Italian Prime Minister Giorgia Meloni, a Trump ally, said the deal had avoided "potentially devastating" consequences. Markets in Asia and Europe welcomed the certainty and rose following the announcement -- reflecting the 4.4 billion euros ($5.1 billion) worth of daily transatlantic goods and services trade that were at stake. Hanging over the negotiations was the risk to other areas of cooperation -- like Ukraine -- if the EU descended into a trade war with its closest security partner. "It's not only about the trade -- it's about security, it's about Ukraine," Sefcovic told reporters Monday. Jacob Funk Kirkegaard of the Peterson Institute for International Economics acknowledged it was "clearly an imbalanced deal" if judged purely on trade terms. "But if you're trying to avoid worse national security outcomes, well then maybe the deal is not so bad," he said. - Cautious approach - The EU had sought to ramp up the pressure in the final stretch of talks, fearing a bad deal and higher levies, with countries approving a $109-billion package of counter-tariffs at the last minute. And states led by France were pushing for a more robust response including the option to deploy the trade "bazooka" known as the anti-coercion instrument. But the threat of retaliation was consistently framed by Brussels as a last resort should talks fail, and experts suggested the hardening stance may have come too late to make a real difference. "If the EU had played hardball at the very beginning, it probably could have got a better deal," ECFR's Rizzi told AFP. raz/ec/rl
The Australian
35 minutes ago
- The Australian
Liverpool FC's billion dollar transfer spree could break Premier League record
'The Reds have got no money and we're gonna win the league' was the chant when Liverpool went 2-0 up against Newcastle in February. Ironically, five months later, Arne Slot's men could find themselves two-up over the Magpies in the transfer market – but a lack of cash is certainly no longer on the Anfield agenda. Having already beaten the Toon Army to the £79million signing of Hugo Ekitike, Liverpool are also hoping to land Alexander Isak. Liverpool fans show their support with scarves and flags. Picture:The Reds have already smashed the British transfer for Florian Wirtz and talkSPORT understands they are willing to do so again for the Newcastle superstar. In total, Liverpool have splashed out close to £300m on Jeremie Frimpong, Ekitike, Wirtz and Milos Kerkez. A deal for Isak would see the Merseysiders break the record for the highest spend from any club in a single transfer window. Alexander Isak seems headed to Liverpool. Picture: Glyn KIRK / AFP That feat is still held by Chelsea's £391m spree on 11 signings, including Moises Caicedo and Cole Palmer, in the summer of 2023/24. The Blues have a case for boasting the most successful single transfer window of all time, whether it be the arrivals of Didier Drogba, Ricardo Carvalho, Arjen Robben, and Petr Cech under Jose Mourinho in 04/05 – or indeed, the likes of Diego Costa and Cesc Fabregas once the Special One returned to Stamford Bridge. A year after Real Madrid's £233m eight-man 2009 window, Mourinho even inherited the all-star Galacticos: Cristiano Ronaldo, Kaka, Xabi Alonso, and Karim Benzema. However, Rory Jennings believes Liverpool's ability to blend marquee signings with genuine upgrades to key areas puts them out ahead. He told talkSPORT: 'I just think that overall, this window, it's got a bit of everything. 'And if they end up signing the best striker in the Premier League, Alexander Isak, as well, I mean, I think this could be the best and most complete transfer window of all time.' Biggest transfer window spends ever 1) Chelsea (summer 2023/24) – £391m 2) Al-Hilal (summer 2023/24) – £298m 3) PSG (summer 2023/24) – £295m 4) Real Madrid (summer 2019/20) – £279m 5) Chelsea (winter 2022/23) – £278m 6) Liverpool (summer 2025/26) – £263.5m*
