The fragrance and fashion group on Thursday reported a 19 percent leap in net profits last year to 155 million euros, or $215.8 million, driven by gains in international markets. Overall, Puig grew its worldwide market share in the selective perfumery sector to 7.6 percent last year from 5.1 percent in 2007, putting it in seventh place in the global fragrance ranking.
Revenues at the Barcelona-based fashion and fragrance group — parent of the Carolina Herrera, Nina Ricci, Paco Rabanne and Jean Paul Gaultier houses — increased 12 percent in the period to 1.34 billion euros, or $1.87 billion. The growth was fueled mainly by sales in international markets, which accounted for 80 percent of Puig’s business last year, versus 65 percent in 2007.
Dollar figures are converted from euros at average exchange rates for the periods in question.
“The results of last year are the consequences of a certain strategy that we chose to pursue a few years ago, when we said that we wanted to focus our activity in building brands through fashion — and that has to do with the brands that we have in our portfolio — and then translating the image of those brands in the fragrance category, whether ours or from third parties through licensees,” said Marc Puig, Puig chairman and chief executive officer, reached by phone Thursday evening.
“In 2011, we have grown in Europe, we have grown in the international markets, we have grown in the U.S. And the launches of certain products this last year plus the good performance of some of our pillars over the last few years has also contributed to this growth,” said Puig, who explained, save for in Spain, the company posted gains in every market and brand.
Puig’s domestic market now accounts for only 20 percent of its net revenues, versus 36 percent in 2007.
The company highlighted the launches of 212 VIP Men and CH L’Eau by Carolina Herrera as growth contributors in the fragrance category.
Sales in Puig’s fashion division, now headed by president Ralph Toledano, advanced 31 percent last year.
“All brands grew,” said Puig.
About the business, he said, “Although fashion is a small part of our activity, it’s one that is showing consistent growth over the past few years.”
Asked to comment on the ongoing rumor that Puig is interested in acquiring Valentino, the fashion house, whose fragrance license the company already holds, the executive said, “I can say two things in that regard. Number one, that basically we are very happy with the relationship that we started two years ago with Valentino. And as licensee, we have launched last year our first product as a result of this collaboration, and we are more than happy of the relationship, of the results and of the ongoing potential.
“In general, I would say that our aim going forward is to grow the brands we have in our portfolio and the activities we have in our portfolio,” continued Puig. “We think that there is plenty of potential with the brands that we have in our portfolio today. So we’re not looking at adding new brands.”
Sales at Puig accelerated in the first quarter of 2012, advancing 20 percent thanks to a double-digit trend in international markets and single-digit decreases in Spain.
The company expects to surpass 1.4 billion euros, or $1.85 billion at current exchange, in net revenues this year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
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Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast