Beauty and nutrition boost THG Q3 sales

THG, the owner of Lookfantastic and Cult Beauty, has reported a 2.1% increase in revenue to £518.6 million in the third quarter ending 30 September 2022.

The group's beauty and nutrition categories delivered revenue growth of 4.9% and 2.9% respectively, reflecting continued share gains in strategic markets.

THG also said that consumer behaviour during the third quarter remained "stable and consistent", highlighting the resilience of its beauty, health and wellness categories. The group saw stable average order values, repeat rates in line with the first half and growth in new customers acquired through apps.

THG Ingenuity, the group's ecommerce solutions offer, has been repositioned under CEO Vivek Ganotra to focus on "larger, higher contract value clients, leveraging the group’s proprietary technology platform and end-to-end proposition". In Q3, it saw a 1.3% increase in revenue to £51.7 million.

Looking ahead, THG has reported a "positive start" to Q4, with momentum expected to accelerate as the group enters its peak trading period.

Matthew Moulding, CEO of THG, said: “Another strong quarter of delivery across our beauty and nutrition divisions has enabled market share growth in our key global territories.

"We remain committed to our strategy of supporting our customers around the globe through investment in price protection, without compromising on quality or choice. As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories and, through investing in bringing them into and retaining them within the THG ecosystem, we are laying the foundations for our future growth.

“The fourth quarter has started positively, and we are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high- quality customer experience."

Earlier this month, Japanese investment giant Softbank offloaded its stake in THG to the group's founder and Qatar Investment Authority, which represented its entire shareholding in THG.