Puig shares were falling sharply in early trading Friday after the luxury beauty and fashion company said its Charlotte Tilbury brand was voluntarily recalling certain batches of its makeup setting spray.

Puig, which went public in Madrid in May, said Thursday that the recall was expected to affect the results of its makeup segment, but was not expected to have a "material" impact on overall full-year results.

The company said a routine test of the product found an isolated quality problem in a limited number of batches, which did not mean the product was unsafe.

It added that no other Charlotte Tilbury products had been affected.

Makeup and skin care brand Charlotte Tilbury, known for its Pillow Talk makeup collection, was one of Puig's top three brands last year, according to its annual report.

Makeup contributed 18% of its net profit in 2023, while skin care accounted for 10%.

Analysts at JPMorgan noted that the recall could have an additional single-digit impact on makeup comparable sales growth in the fourth quarter.

They added that there could be an indirect effect in the first quarter of 2025, depending on the speed of product substitution.

The company, which also owns the Rabanne, Carolina Herrera and Jean Paul Gaultier perfume brands, said it was confident of achieving its 2024 targets, including a stable EBITDA margin compared to 2023.

Shares fell as much as 9%, but recovered some of their losses and were down 3.5% at 0.02 GMT, among the biggest fallers in Europe's STOXX 600 index.

(Reporting by Anna Pruchnicka; editing by Mark Potter and David Evans; Spanish editing by Javi West Larrañaga and Jorge Ollero Castela)