THG’s share price has shot up after revealing a return to growth.
Shares in the company are up by just over 21% over the past five days, though remain down 48% over the past 12 months.
The group, which owns online retailers Lookfantastic and Cult Beauty, said trading in the second quarter of 2025 has been “much improved” across both beauty and nutrition.
The beauty side of the business is expected to deliver a revenue decline of between 2% and 3% – an improvement on the 9.8% fall in the previous quarter.
The nutrition business, which includes MyProtein, is expected to grow between 5% and 7%.
Beauty retail “traded resiliently”, the company said in an update to financial markets ahead of its AGM last week.
Growth in the UK – THG’s biggest market – is at its highest rate since the first quarter of 2024, the company said in a statement.
Withdrawal from lower margin Asia and European territories annualises in the third quarter, THG said, “thereby neutralising the year-on-year revenue drag effect from that point onwards”.
Own-brand beauty revenue was held back in the quarter, “reflecting timing differences of key customer orders”, but this is expected to reverse in the second half of the year, read a statement from the company.
THG also said that “direct exposure to tariffs is expected to be less than £1m pre-mitigating actions.
“We continue to monitor the changes to US trade policy and reciprocal actions for an adverse impact on raw material supply chains and US consumer sentiment.”
In its full-year financial results for 2024, published at the end of April, total revenues fell to £1.94bn, down from £2.04bn in 2023, impacted by the demerger of THG’s ecommerce solutions platform Ingenuity.
Operating losses were also reported at £147.9m, a significant increase on the loss of £39.2m seen in 2023.
The company has had a rocky time since its IPO in 2020.
Commenting on the 2024 results last month, Matt Moulding, THG founder and CEO, said: “To say 2024 was a year of change at THG is a hideous understatement.
“The shocks to the global economy that started in early 2022, hot on the heels of Covid-19, meant most businesses had to quickly adapt – THG was no different.”
As well as the demerger, 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.