The Hut Group raises full year revenue guidance
The Hut Group has raised its full year revenue guidance after its third quarter sales climbed by 38.6% to £378.1 million.
In the three months to 30 September, the health and beauty group’s online revenue growth was also strong with direct-to-consumer sales increasing by 51.3% to £320.2 million.
In its first market update since its IPO in September, THG said it benefited from growth in new customer acquisition as well as an improvement in repeat purchase rates in the period.
The group’s Ingenuity technology division also performed well with revenue climbing by 171.4% to £5.1 million.
Matthew Moulding, group chief executive and executive chairman, 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. 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.”
The group has now raised its full year revenue guidance from £1.43 billion to between £1.48 billion and £1.52 billion.
Looking ahead to the peak Christmas trading period, THG said its fourth quarter typically accounts for around 30% to 32% of group revenue each year, with Black Friday playing a key role.
Moulding added: “THG has a very strong balance sheet, enabling us to further invest across each of our growth pillars. THG’s core competencies leave it exceptionally well placed and we are witnessing increased opportunities, in scale and volume, for selective acquisitions across all our divisions and geographies.”
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