By Alessandro Carrara
Rising interest rates and energy costs, which were anticipated to place pressure on consumers, led the group to reduce its sales guidance in September
THG’s Beauty division boosted sales for the group’s Q3 results
Shares in THG have jumped by 11% after the British e-tailer reaffirmed its full-year sales guidance for 2022.
The Lookfantastic and Glossybox owner is now expecting revenue growth between 10-15%, with an adjusted EBITDA range of £100-130m.
It comes after the group reported a revenue increase of 2.1% for the three months to 30 September 2022.
THG’s Beauty and Nutrition divisions were highlighted as the key performers during the Q3 period, boosting sales by 4.9% and 2.9% respectively.
The business has also made a strong start to its fourth quarter period, CEO Matthew Moulding told Reuters.
"As cost of living pressures rise, customers are continuing to prioritise beauty, health and wellness categories," said Moulding.
THG shares slumped by 10% in September when the group issued a profit warning in its half-year 2022 results.
The warning came despite strong revenue growth for the first half of the year, which led THG to have a confident outlook for the following six months.
Rising interest rates and energy costs, which were anticipated to place pressure on consumers, led to the reduced guidance for 2022.
"Against the tough macro-economic backdrop, we have prioritised our loyal customer base, over maximising near term gross margins focusing on retention and growth of consumerism,” said Moulding at the time.
“The strength, resilience and agility of our vertically-integrated business model, coupled with automation, has enabled us to significantly invest in price protection for consumers currently facing unprecedented cost-of-living challenges.”