Sales improved in the first three months of 2024 thanks to “standout” results from its cosmetics division, and THG aims for first-half revenues to climb. The online retailer, which was formerly known as The Hut Group, reported a continuous turnover increase for the first quarter of £455.4 million, or 4.5% on a constant currency basis, up from 1.1% for the preceding three months.
The company’s beauty division saw an 11.1 percent revenue gain to £267.6 million, which it attributed to strong UK demand and a greater emphasis on more lucrative regions and clientele. The e-commerce services platform Ingenuity experienced a 5.9% increase in external income to £37 million as a result of many contract wins, one of which was with lifestyle brand White Stuff just before its German relaunch.
Following the sale of cycling equipment company ProBikeKit to retail behemoth Frasers Group earlier in 2023, THG’s plan to sell non-core assets came to an end with the disposal, which included entertainment retailer Zavvi. THG currently projects high single-digit numbers for the next six months and a turnover increase of 2 to 5 percent for the first half of this year. By Tuesday afternoon, THG shares had increased 4.7% to 64.9p, but they are still well below the 500p price of their first public offering.
In the middle of a COVID-19-related boom in online retail, the company made its debut in September 2020 with the largest listing on the London Stock Exchange in seven years. However, since then, it has battled with declining internet sales, problems with corporate governance, pressure from short sellers, and a slew of earnings warnings.
Matthew Moulding and John Gallemore launched THG in 2004. The company’s brands include the skincare retailer Dermstore, the makeup brand Illamasqua, the movie distributor Arrow Films, and the newspaper City A.M.
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