THG delivers 4.5 percent Q1 sales increase

Overall THG Group achieved first quarter revenue growth of 4.5 percent to 455.4 million pounds.

The company said in a release that THG Beauty delivered a growth of 11.1 percent to 267.6 million pounds following targeted changes to geographic strategy through 2023, focusing on more profitable customers and territories closest to the global distribution hubs.

Commenting on the trading update, Matthew Moulding, CEO of THG said: "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 company’s performance in the UK was ahead of the overall Beauty business at 11.1 percent growth. App participation grew to 24 percent of online revenue, with particularly strong participation in the UK at 35 percent.

The company added that THG Beauty further increased market share in the UK total premium beauty market, and further enhanced its fragrance credentials with 10 new brand launches.

THG Ingenuity external revenue at 57 million pounds increased by 4.5 percent with monthly recurring revenue in March up at 26.3 percent.

During the first quarter, THG Ingenuity inked a partnership with fashion and lifestyle brand White Stuff on their brand re-launch into Germany. Through a fully localised technology, digital marketing and fulfilment strategy to better serve White Stuff's growing German customer base, the relaunch delivered 75 percent revenue growth.

The company further said that the group revenue growth in the first half is anticipated to be in the range of 2 percent to 5 percent on a continuing basis and down 1 percent to 2 percent reported, moving towards high single digits in the second half.