THE WHAT? Shares in THG have risen 10.6 percent to 737.3p following upgraded annual guidance from £1.48 billion to £1.52 billion.
THE DETAILS The first update since its IPO last month, THG announced ‘continued momentum’, with the forecast being raised following a leap in Q3 sales of 38.6 percent to £378.1 million.
THG stated that the fourth quarter remains a ‘key and important trading period each year,’ and accounts for 30-32 percent of annual revenue. Black Friday was stated as playing a key role.
Chief executive Matthew Moulding said: “I am pleased to report a strong period of trading in our first quarterly update as a public company, including an upgrade to revenue growth guidance for 2020. I would like to thank all our colleagues for their huge contribution to date.”
THE WHY? The boost in share price follows a period of growth for the beauty website, which recently raised $2.4 billion in an IPO in a bid to ride the digital wave.
Moulding continued, “Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period.
“Our decision to list on the London Stock Exchange provides us with a strong platform to raise the profile of both Ingenuity and our brands, and further supports their strong organic growth.
“Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.”