THG has posted strong sales growth in the first quarter of 2024, which it said was led by a “standout performance” across its beauty divison.
The Cult Beauty and LookFantastic owner saw a 4.5% jump in revenue compared to the previous year as total sales edged up 0.3% on a continuing basis, reaching £459.9m.
THG Beauty sales surged 11.1%, driven by a “notably strong” performance in the UK.
The business hailed “strong momentum in beauty offsetting continuing currency headwinds”.
Chief executive Matthew Moulding said: “Beauty delivered double digit growth in the quarter, with a high quality, loyal customer base bringing greater profitability per order across a more efficient cost base.”
The company highlighted the addition of US brand Biossance to its portfolio, adding it has the potential to “scale to become one of our largest own brands” after early “positive” signs.
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The group maintaines its guidance for the year as it expects sales to increase between 2% and 5% on an ongoing basis.
Matthew Moulding added: “Following the group’s return to revenue growth in Q4 2023, it’s pleasing to report an acceleration in Q1, which is testament to the hard work and dedication of our people, who’ve remained focused on the task in hand despite the tough macro-economic backdrop.
“The Q1 performance of our largest business THG Beauty, is especially encouraging. The operating model changes made throughout 2023, including focusing on more profitable territories and customers, temporarily impacted growth for much of last year, however, since Q4, we are seeing tangible benefits from these actions.
“This is reflected in THG Beauty’s loyalty membership reaching 2.3m people at the end of Q1, less than two years after launch.”
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