25th Jun 2025 09:42
(Alliance News) - THG PLC on Wednesday said it had a "much improved" second quarter in its core Beauty and Nutrition arms, as it returned to revenue growth.
The Manchester-based retail firm, behind brands such as Lookfantastic and Myprotein, said the group returned to constant currency revenue growth in the quarter "underpinned by a strong June exit rate supporting unchanged full-year 2025 guidance."
In response, shares in THG leapt 16% to 32.52 pence each in London on Wednesday. The stock remains down 47% over the past 12 months, however.
THG said following a "significant improvement" quarter-on-quarter, it expects a Beauty revenue decline between 2.0% and 3.0% in the second quarter, following a 9.8% slide in the first.
"Beauty retail, which comprises the vast majority of the Beauty business, traded resiliently with growth in the UK (the largest territory) at its highest rate since Q1 2024 supporting market share gains. The decision to withdraw from lower-margin Asia and European territories annualises in Q3, thereby neutralising the year-on-year revenue drag effect from that point onwards," THG said.
Nutrition revenue in the quarter is expected to be up by between 5.0% and 7.0% in the second quarter, after edging up 0.1% in the first quarter.
"Positive momentum within Nutrition continues to build, with new customer growth supporting a solid online performance," THG said.
THG said it continues to monitor US trade policy but expects its direct exposure to tariffs to be less than GBP1.0 million before mitigating actions.
By Jeremy Cutler, Alliance News reporter
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