LONDON, Oct 25 (Reuters) – British online retail platform THG (THG.L) reaffirmed full-year guidance which it lowered last month, saying demand for its health and beauty products was showing resilience to the cost of living crisis, sending its shares higher.
The group, which owns skincare, haircare, cosmetics and nutrition brands as well as retail websites including Lookfantastic, Dermstore and Glossybox, said on Tuesday that revenue for the third quarter to Sept. 30 rose 2.1%.
Shares in THG, formerly known as The Hut Group, were up 11% at 0730 GMT, paring 2022 losses to 77%.
“As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories,” CEO Matthew Moulding said, highlighting sales growth of 4.9% and 2.9% in the group’s THG Beauty and THG Nutrition divisions, respectively.
He said the group had also made a positive start to the fourth quarter, with momentum expected to accelerate as it enters its peak trading period.
The group maintained its full-year 2022 expectation of revenue growth of 10% to 15% and adjusted EBITDA of 100-130 million pounds ($113-$147 million), down from 161 million pounds made in 2021.
It kept its guidance for year-end cash at about 500 million pounds.
THG also said it had signed an incremental 156 million pound banking facility.
($1 = 0.8864 pounds)
Reporting by James Davey; editing by Paul Sandle and Jason Neely
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