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THG Reports Solid Q4 Performance and Forges New Partnership with Holland & Barrett

Published: January 23, 2024
Author: Fashion Value Chain

E-commerce giant THG has disclosed that its fourth-quarter results, spanning up to December, align with expectations and guidance, echoing a successful full year. While THG’s OnDemand division sale and strategic review led to the discontinuation of some legacy brands, its continuing businesses experienced a modest 1.1% uplift in Q4.

With a robust balance sheet and liquidity of approximately £600 million, THG also unveiled a strategic partnership with retailer Holland & Barrett for its Ingenuity operation. The continuing business within the main THG operation reported a Q4 group revenue of £597.9 million, showcasing its best quarterly revenue performance of the year.

The Beauty operation, a crucial segment for THG, saw a 2.6% increase in Q4 revenue on a continuing basis, amounting to £387.1 million. However, the full-year revenue dipped by 4.3% to £1.17 billion. THG expressed satisfaction with the Q4 performance, highlighting the accelerating growth in App penetration and reduced reliance on paid marketing channels.

Ingenuity, THG’s e-commerce services arm, witnessed an 8.1% external revenue rise in Q4, reaching £44.3 million. Despite a 3.3% decrease for the year at £153.7 million, the company celebrated positive trends from the decision made in 2022 to focus on higher-margin enterprise clients.

The UK, contributing over half of total Beauty revenue, showed “especially strong” performance with a 9% revenue growth in Q4. New user acquisitions, improved delivery times, and higher sales through the app played pivotal roles in surpassing the total prestige beauty market in the UK.

THG CEO Matthew Moulding expressed confidence in the year ahead, anticipating growth and expecting to provide more details alongside the preliminary results in April. Moulding highlighted the company’s resilience and growth throughout 2023, attributing success to automation, cost initiatives, and improvements in service delivery.

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