// The Hut Group raises full year revenue guidance
// Third quarter sales rose 38.6% to £378.1 million
// Direct-to-consumer sales rose 51.3% to £320.2 million
The Hut Group has reported a third quarter sales increase and has raised its full year revenue guidance thanks to online growth.
The ecommerce platform saw its sales rise by 38.6 per cent to £378.1 million in the three months to September 30.
Online revenue also grew with direct-to-consumer sales increasing by 51.3 per cent to £320.2 million.
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In its first market update since its IPO in September, THG said it benefited from growth in new customer acquisition as well as an improvement in repeat purchase rates in the period.
The group’s Ingenuity technology division also reported a revenue increase of 171.4 per cent to £5.1 million.
“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,” THG group chief executive and executive chairman Matthew Moulding said.
“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.
“Our decision to list on the London Stock Exchange provides us with a strong platform to raise the profile of both Ingenuity and our Brands, and further supports their strong organic growth.
“Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.”
The group has now raised its full year revenue guidance from £1.43 billion to between £1.48 billion and £1.52 billion.
THG said its fourth quarter accounts for around 30 per cent to 32 per cent of group revenue each year.
“THG has a very strong balance sheet, enabling us to further invest across each of our growth pillars,” Moulding said.
“THG’s core competencies leave it exceptionally well placed and we are witnessing increased opportunities, in scale and volume, for selective acquisitions across all our divisions and geographies.”