Puig Expects Revenue Increase

PARIS — Puig posted practically flat sales and profits in 2014, but the Spanish fragrance and fashion company said it expects to increase organic revenues 33 percent by 2017. Marc Puig, company chief executive officer, acknowledged the firm’s growth had stalled recently. “The initiatives we are going to take will probably affect our profitability over the next two years,” he told WWD, referring primarily to the integration of the Jean Paul Gaultier fragrance business, which will cost tens of millions of euros. Negotiations have finished with Shiseido to sell the intellectual property rights of the Gaultier fragrance products and its activity that Beauté Prestige International, the Japanese beauty giant’s fragrance arm, had been managing. The transfer will take place on Jan. 1, said Puig, although the integration should begin sooner and therefore impact results this year. Puig, which became the majority shareholder of Gaultier’s fashion house in 2011, is to manage the label’s fragrance business itself. Despite the added cost, the executive maintained the company is to return to a growth track quickly. By 2017, Puig’s overall profit margin should be about on a par with this year’s, which is 16 percent. Puig said Thursday that its 2014 net profits rose 0.8 percent to 177 million

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