26th Oct 2020 08:57
(Alliance News) - Online retailing platform THG Group PLC on Monday raised its revenue guidance for 2020, following strong trading in the third quarter and continued momentum in the fourth quarter to date.
Shares in THG - which trades as The Hut Group - were up 7.0% at 713.52 pence on Monday in London.
THG said for the three months to the end of September, total revenue grew by 39% year-on-year to GBP378.1 million.
The group reported growth across all businesses. The largest contributor was THG Beauty, which grew revenue by 45% to GBP157.5 million. However it was the THG Lifestyle division which grew at the fastest percentage rate, with an 80% increase to GBP24.4 million.
THG said that new customer acquisition has remained strong, with improving repeat purchase rates from both new and existing customers. Meanwhile, operating costs remained stable, with continued reinvestments leaving margins unchanged.
For the first nine months of 2020, revenue increased by 37% to GBP1.05 billion.
THG listed in London last month with a market capitalisation of GBP5.40 billion and at the time guided for annual revenue of GBP1.43 billion.
However, as a result of the stronger quarterly performance, the group now expects revenue to be between GBP1.48 billion to GBP1.52 billion, reflecting a 30% to 33% increase from GBP1.14 billion the year before.
Looking ahead, THG said the fourth quarter remains a "key and important trading period each year", accounting for 30% to 32% of revenue each year, with Black Friday playing an important role.
"I am pleased to report a strong period of trading in our first quarterly update as a public company, including an upgrade to revenue growth guidance for 2020. I would like to thank all our colleagues for their huge contribution to date. Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period," said Chair & Chief Executive Officer Matthew Moulding.
By Dayo Laniyan; [email protected]
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