THG has reported its strongest quarter in four years, sending the company’s share price up more than 3% in morning trading on the London Stock Exchange.
Organic sales at the group, which owns online retailers Lookfantastic and Cult Beauty, grew 6.3% in the third quarter to £405.2m, signalling its best quarterly performance since the fourth quarter of 2021.
THG Beauty sales for the period were down 1.2% year-on-year to £258.2m, but up 4.2% on a constant currency and continuing basis, which strips out discontinued categories, as well as Claremont Ingredients, the sale of which completed in September.
The nutrition side of THG’s business, which includes Myprotein, grew 9.3% year-on-year, and 10% on a continuing and constant currency basis, to £147m.
Strong revenue growth across both divisions followed “operating model changes and brand proposition investment”, the company said in a statement.
The performance is in line with expectations for the company’s full-year performance as it heads into its “most profitable and cash generative period” over the Christmas season.
Beauty advent calendar sales are on track for a record year, the company said in a statement.
“Solid momentum” in UK retail, including double-digit revenue growth for Lookfantastic and “impressive contributions from newly launched brands”, helped THG reach its highest revenue growth in beauty since the first quarter of 2024.
The company also saw an improvement in its US retail performance driven by growth in the luxury skin care and devices categories.
Growing customer subscriptions in the country supported order frequency and lifetime value improvements, with revenue growth up 22% year-on-year.
“I am pleased to report a solid Q3 performance, with a return to growth across both THG Beauty and THG Nutrition,” said Matt Moulding, CEO of THG.
“In THG Beauty, our focus on commercial discipline and elevating the brand proposition has driven a return to revenue growth, supported by a strong advent launch.
“Within THG Nutrition, we remain on track with our focus on expanding Myprotein's D2C market share, alongside accelerating our global offline presence through retail and brand partnerships.
“A number of exciting new partnerships are set to be announced soon, helping us to further build on this year's positive momentum.”
“Our progress is a direct result of the strategic initiatives and operational change we have implemented, and we are well positioned for the key trading period ahead.”
In a personal post on LinkedIn, Moulding said that “the numbers speak for themselves”.
The business, which Moulding founded in 2004, has struggled since going public in 2020.
In the post, the beauty boss said: “Four years of chaos, pressure and pushback. Every possible curveball. Every doubter.
“Like so many founders and builders out there – we have been through the mill.”
As well as selling off parts of the business, Moulding noted THG had introduced artificial intelligence (AI) and robotics to reduce its headcount by nearly 5,000 since January 2022.
He said the business, which owns beauty brands such as ESPA, Christophe Robin and Ameliorate, refinanced its balance sheet in December 2019 cutting back debt levels from a decade ago.
THG Ingenuity, the logistics part of the business, was also spun out into a private company.
“It has been relentless. Brutal at times. But this is what rebuilding looks like. No shortcuts. No spin. Just graft,” he added.
In a candid message on the professional social media platform in March, Moulding said he had waived all remuneration and expenses since the company went public.