GDANSK, April 28 (Reuters) - Spanish beauty company Puig

reported slower sales growth on Tuesday, reflecting

more moderate demand particularly in fragrances which account

for the bulk of its sales.

The results highlight growing pressure on the global beauty

sector as geopolitical tensions in the Middle East disrupt

airport shopping and curb international travel, a key sales

channel for premium fragrance makers.

The slowdown also follows a loss of momentum in the broader

fragrance market as consumers turn more cautious, raising

concerns about the sustainability of recent growth trends across

the industry.

KEY DETAILS

* The group posted revenue of 1.22 billion euros ($1.43

billion) in the first three months of the year, slightly above

the 1.21 billion euros booked in the same period last year

* J.P. Morgan analysts had expected Puig's first-quarter

like-for-like sales to grow 2.2%, supported by growth across all

divisions even though the global fragrance boom is cooling and

luxury demand remains uncertain

* Puig, which derives a tenth of sales from travel retail,

did not provide total travel-retail sales but is one of the more

exposed beauty companies to swings in airport shopping and

international travel, according to analysts

* The Middle East conflict had about a 1.2% estimated

negative impact, mainly in March, with further impacts expected

and the company monitoring the situation

* By region, like-for-like sales in the Americas increased

2.0%, Asia-Pacific rose 26.1%, and EMEA, its largest market,

grew a modest 3%, reflecting softer consumer demand

* Fragrances and fashion, which account for about 74% of

sales, rose 3.9%, while makeup and skincare categories increased

9.2% and 4.7%, respectively

* Company maintains its 2026 outlook despite the

macroeconomic uncertainty, Puig's Chief Executive Officer Jose

Manuel Albesa said

* The results come amid talks regarding a potential merger

with U.S. cosmetics giant Estee Lauder ( EL ) which would create

the world's largest premium beauty player with brands including

Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier, and

Clinique under one roof

* No final decision has been taken as of April 28, and no

assurance on the deal or its terms has been made, Puig added

($1 = 0.8538 euros)