The Hut Group (THG) has reported strong revenues in Q4 with its beauty category proving untouchable during the Covid-19 pandemic.
The Manchester-based firm, run by multi-millionaire Matthew Moulding, said revenues increased 51% year-on-year to £558.7m, outperforming its predicted forecast of between 40% and 45%.
THG Beauty, which runs the website for e-tailer Lookfantastic and subscription beauty brand Glossybox, as well as beauty brands ESPA, and Illamasqua, was the group’s second highest performing category behind THG OnDemand, renamed from THG Lifestyle.
Revenue in the quarter was up to £298m, a 60% uptick in growth for the same period in 2019.
As a result of its strong momentum at the end of 2020, THG has lifted its profit forecast for fiscal year 2021 to between 30% and 35%, up from 20% to 25%.
In a press statement, Moulding, who co-founded the group in 2004 and serves as CEO and Executive Chairman, said the “focus and dedication” of THG’s workforce was behind the milestone year.
“I am pleased to report another strong performance through Q4 2020, during what has been a transformational year for THG,” he said.
Profits in a pandemic
Moulding’s business venture has been the success story of the Covid-19 pandemic.
Following its float on the London Stock Exchange in September, with a £4.5bn equity value, the e-commerce giant went on to purchase luxury skin care brand Perricone MD for US$60m.
With a strong debut, THG’s shares rose by a quarter to 633p, handing Moulding a £830m bonus, one of the biggest payouts in UK corporate history.
THG kicked off 2021 by snapping up US online beauty retailer Dermstore, in a deal that is expected to fetch $350m.
“Each of these milestones further underpin THG’s strategic growth pillars outlined at IPO, giving management significant confidence when looking ahead to 2021 and beyond, and driving the increase in our guidance for the year ahead.
“I would like to thank all our dedicated colleagues who have risen to the challenge to deliver such a strong performance in difficult and unprecedented global circumstances.”
