THG shares tumble as its plan to win investor support backfires

THG’s share price plunged by a third in the hours following its Capital Markets Day yesterday
THG owns a range of online beauty and nutrition brands including Lookfantastic and Myprotein.
// THG’s share price plunged by a third in the hours following its Capital Markets Day yesterday
// The meeting was widely seen as an attempt to reset negative commentary although this backfired

THG lost a third of its value on Tuesday after an investor presentation backfired and its chief executive claimed the online retailer was under a “short attack” from hedge funds betting against its shares.

The retailer, formerly known as The Hut Group, which is run by its founder and chief executive Matt Moulding, held a “capital markets day” where it shared its 2030 sustainability strategy with investors.

The meeting was widely seen as an attempt to reset negative commentary and explain the value of the group’s white label online retail business, THG Ingenuity.


READ MORE: The Hut Group sets out new sustainability strategy


Despite this, the share price of the Manchester-based retailer tumbled as much as 33 per cent on Tuesday afternoon as investors were left disappointed by the company’s presentation.

One top-30 shareholder in THG said investors had wanted “greater visibility over cross charges between the beauty and nutrition businesses and Ingenuity at the capital markets day, which they failed to provide.”

It has been less than 13 months since THG first floated on the London Stock Exchange in September last year, with an offer price of 500p a share, which valued the business at £4.5 billion.

However, this most recent slide in value follows weeks of share price falls.

The company’s share price has tumbled by more than half over the past month, since THG revealed its results for the first half of the year and announced plans to separate out its Ingenuity technology division from its beauty and nutrition divisions.

The retailer has also come under pressure in recent weeks following a report from independent research provider The Analyst, which expressed concerns about the prospects for THG Ingenuity.

THG Ingenuity, previously described by Moulding as a global retail technology platform, played a key role in attracting investment from Japanese investment giant SoftBank in May.

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