What happened Puig, the Spanish beauty conglomerate behind iconic perfume brands like Carolina Herrera, Jean Paul Gaultier, and Rabanne, capped off 2024 with strong fourth-quarter performance. The company reported a 14.3% YoY increase in Q4 sales to 1.36 billion euros ($1.42 billion), surpassing analysts’ expectations. Growth was primarily fueled by the continued success of its fragrance division, which accounts for 73% of overall revenue. Puig’s fragrance sales soared by 21% in the holiday quarter, with Carolina Herrera’s Good Girl fragrance reaching the top spot in the U.S. for the first time. The strong fragrance results helped Puig weather a slight dip in makeup sales, where its high-profile Charlotte Tilbury brand experienced a setback. A voluntary product recall, due to quality issues with some batches of the Airbrush Flawless Setting Spray, led to a 7.2% decline in makeup revenue. Despite this, the company has begun reshipping the product to retailers, signaling a return to normalcy in this category. Overall, Puig’s full-year sales rose by 11%, reaching 4.79 billion euros ($4.99 billion), surpassing the company’s guidance for the year. Puig’s exposure to Europe, the Middle East, and the Americas helped buffer it from the challenges facing other beauty giants, particularly in China. As demand in China continues to wane due to a slowing economy and high youth unemployment, Puig has benefited from less reliance on the region compared to rivals like Estée Lauder and L’Oréal. The Jing Take Meanwhile, Estée Lauder, a key player in the global beauty industry, has faced significant hurdles. Amid declining sales in China, the U.S.-based beauty giant is reportedly reassessing its brand portfolio, with the possibility of divesting underperforming assets. This restructuring effort is compounded by a 50% drop in Estée Lauder’s stock value in 2024, leaving analysts questioning whether new CEO Stéphane de la Faverie can reinvigorate the company. De La Faverie, who took the reins last month, is credited with driving growth at Estée Lauder’s high-end fragrance brands, including Le Labo and Kilian Paris. But can his strategy steer the company through its current financial turbulence? As part of its cost-saving overhaul, Estée Lauder also announced that it will more than double its planned job cuts, reaching up to 7,000 positions globally. This move follows the company’s decision to reduce its sales and profit forecasts for 2024 and slash its dividend payout. Its struggles in China are emblematic of broader industry challenges, as competitors are also feeling the effects of a slow recovery in the region. While Estée Lauder reconfigures its portfolio and considers further restructuring, other players such as L’Oréal are recalibrating their strategies. L’Oréal’s recent sale of a 3 billion euros ($3.1 billion) stake in Sanofi to optimize its balance sheet is part of a broader trend in the beauty industry, where companies are focusing on liquidity and adapting to uncertain market conditions. Similarly, luxury conglomerates like Kering are ensuring financial flexibility, exemplified by the sale of its stake in The Mall Luxury Outlets. With rivals like Puig gain ground and Estée Lauder grapples with brand performance and market conditions, one key question remains: Will Estée Lauder’s new leadership turn the tide, or will Puig and L’Oréal continue to capitalize on its challenges? As the industry continues to adapt, the coming months will reveal how well these companies can execute their strategies in an increasingly uncertain global landscape. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.