THG founder and CEO Matt Moulding has hailed “exceptional” growth at online retailer Lookfantastic after sales grew 7% across the business in the fourth quarter of 2025.
The beauty and nutrition group, which also owns Cult Beauty, reported revenue of £527.4m in the three months to 31 December 2025.
The rise signals THG’s strongest quarter to date, and the performance is ahead of the previous quarter’s high of 6.3% growth.
It comes after a tumultuous time for the business, which Moulding founded in 2004.
Since going public in 2020, THG has struggled and Moulding has sought to rebuild the business, including by spinning off its logistics business Ingenuity and cutting jobs.
Beauty boosted the bottom line in the latest quarter, with revenue in the division hitting £370.2m, up 6.4%.
This includes revenue growth at online retailer Lookfantastic of 16.2% in the UK and Ireland.
Growth across THG’s beauty division was “broad-based across categories, helping deepen penetration in established and high-growth segments”, said THG in a financial statement.
However, cosmetics and skin care drove the strongest performance, with both gaining market share.
The company highlighted its recent partnership with food delivery app Uber Eats for same day delivery for customers in London, UK, as further supporting its focus on “streamlining the product discovery and purchase experience”.
Meanwhile, luxury skin care Perricone MD’s improved performance after a “challenging” first half was driven by investment in brand and formulation, alongside expanded B2B distribution.
The quarter also saw the launch of THG’s luxury spa and skin care brand ESPA at more than 100 Marks & Spencer (M&S) stores, as well as on the UK high street retailer's website,
This helped build brand visibility, the company said, as well as leveraging access to the M&S’s Sparks reward scheme.
Revenue drag in the division came from the sale of its luxury portfolio and other assets in the full 2025 financial year, along with its withdrawal from certain markets in Europe and Asia – factors which the company said have now largely annualised.
Revenue in the quarter at THG’s nutrition division was £157.2m, up 8.5%.
The strong second half of the year means THG delivered full year revenue of £1.72bn and growth of 2.3%, marking the businesses first year of growth since 2021.
“We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period,” said Moulding.
“In THG Beauty, our strategy to focus on core categories and territories is delivering clear results, with Lookfantastic UK achieving exceptional growth.
“We continue to accelerate our digital leadership, prioritising high-margin prestige brands, and enhancing personalisation by increased use of AI and virtual tools.”
In a post on LinkedIn, Moulding also hailed the momentum in the business.
“This is the second consecutive quarter with both divisions back in growth,” he said.
“But what I am most proud of is the shape of it: Q4 accelerated further against a strong Q3.
“That matters – it is momentum.”