THG is at risk of exiting the FTSE 250, just three months after the Lookfantastic-owner joined the UK stock market index.
This is according to FTSE Russell, the global index provider, which advised on its ‘Indicative FTSE 250 Deletions’ based on data as of 23 May 2025.
This list includes THG, along with investment company Bellvue Healthcare Trust and Mobico Group.
The FTSE 250 represents a list of the top 150 companies listed on the London Stock Exchange (LSE) after the FTSE 100, which are all ranked on market capitalisation.
The actual review of the FTSE UK Index Series will be conducted using data as at market close on 3 June 2025, according to FTSE Russel.
The confirmed rebalance changes will then be announced after market close on 4 June 2025.
THG joined the FTSE 250 in March 2025 and was put forward as part of FTSE Russell’s quarterly reviews.
“The rules-driven, impartial quarterly reviews ensure the indexes continue to portray an accurate reflection of the market they represent and form an essential component of the management of the indexes,” FTSE Russell said in a statement in March.
THG founder and CEO Matt Moulding said at the time that the promotion to the FTSE 250 marked an “important moment in THG's evolution” following the demerger of THG Ingenuity.
A promotion to the FTSE 250 can provide a boost to companies as investment funds which track the index automatically buy the stock, while relegation leads to a sale.
The Manchester-based company’s digital logistics branch is now a standalone entity, the separation of which was backed by Moulding through a £10m investment.
Cosmetics Business contacted THG, which were unable to comment.
What’s been going on at THG?
THG has experienced a rocky period of trading, with shares in the company declining by more than 45% over the past year.
The owner of Cult Beauty reported a downturn in full-year 2024 revenues.
Total revenues fell to £1.94bn, down from £2.04bn in 2023, impacted by the demerger of Ingenuity.
Operating losses were also reported at £147.9m, a significant increase on the loss of £39.2m seen in 2023.
THG slashed 160 jobs across its marketing, sales and warehouse teams at the start of 2024 as part of this “operational efficiency” review.
A further 170 roles were cut in July of that year as well, as part of the group’s aim to improve profitability.
Despite the challenges, Moulding hailed 2024 as a transformational year and remains optimistic about its performance going forward.
"2024 was a big year of change and evolution for THG, the highlight of which was the demerger of the group's technology division, THG Ingenuity at the end of the year,” said Moulding.
The company has reduced its global headcount over the past three years from an estimated 10,200 to 6,300 by the end of 2024.
However, Moulding said this is saving THG “well over 200m a year”.
The savings are being reinvested into staff salaries and have also been supporting a recent rebranding effort for THG Nutrition.
“And finally, we have been reinvesting cost savings back into the customer, minimising price rises across all our businesses, building market share and customer loyalty,” said Moulding in a LinkedIn post.
In March 2025, Moulding also committed more cash to THG, having invested up to £60m as part of a refinancing deal and equity fundraise.
This is on top of the £50m worth of shares the entrepreneur has bought since THG’s IPO in 2020.
The business has raised £91.2m in an equity raise and through a convertible loan to pay down debt.
Around £30m was raised through a new offering of shares.
Although Moulding is confident in THG’s stabilisation, the company experienced a difficult first quarter of trading in 2025.
Total revenue fell by 10.6% to £375.6m during Q1 2025, with THG Beauty seeing a 10% decrease in income to £223.6m.
THG claimed beauty’s retail performance was impacted by “weaker trading across the industry of several hugely popular trending brands”.