// THG sales edged up 2.1% in its third quarter with beauty sales growing 4.9%
// The group agreed an additional £156m banking facility
THG sales edged up 2.1% in its third quarter to 30 September as its core beauty, health and wellness categories remained resilient.
The group, which owns brands including Lookfantastic, Glossybox and Cult Beauty, said that consumer behaviour remained “stable and consistent” with sales in its beauty, nutrition and tech platform Ingenuity divisions up 3.8%.
Beauty was the star performer, with sales rising 4.9%. This brings beauty revenue up 64.9% on a two-year basis.
The retail and tech group said that average order values (AOVs) had also remained stable over the quarter and its repeat rates were in line with the first half.
It noted that its growth in new customers acquired through apps continued to drive higher AOVs and order frequency.
THG’s full-year sales and adjusted EBITDA remains unchanged
THG CEO Matthew Moulding heralded “another strong quarter” in beauty and nutrition, which had enabled it to grow market share in its key global markets.
“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 commodity prices ease further, we remain well positioned to grow margins into 2023, whilst reducing pricing to consumers. This positions the group well in continuing to expand market share.
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“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.”
Moulding revealed that its fourth quarter had “started positively” and said it was 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”.
THG revealed it had recently signed for an incremental £156 million banking facility, provided by existing lenders BNP Paribas, HSBC and Natwest. The banking facilities hold three-year terms with no additional covenants.
Moulding said: “Given the current market environment, this is a strong endorsement of the group’s long-term business model, alongside the recently announced increased investment from Qatar Investment Authority.”
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