British retail giant THG has reiterated its full-year guidance despite reporting a 4.4 percent drop in revenue in the third quarter of the year.
The group, which owns a number of fashion, beauty, and nutrition brands including Lookfantastic and Myprotein, said its performance improved progressively each month of the quarter.
Despite the drop, THG noted that Q3 was its best quarterly revenue performance of the year so far as it pushes forward with its turnaround strategy.
Breaking it down by division, revenue at THG Beauty was down 4.4 percent, THG Nutrition was down 4.6 percent, and THG Ingenuity - the company’s software and logistics division - was down 8.4 percent.
CEO and founder Matthew Moulding said: “The momentum with which we exited Q3 was especially pleasing, with the group returning to positive constant currency revenue growth of 3.2 percent in September, driven by a strong performance across our Beauty division.”
THG experienced explosive growth in recent years before going public in 2020 with a 5.4 billion pound valuation.
However, the company has been rocked since then by a tough economic backdrop, as well as concerns over its corporate governance, which resulted in Moulding handing over his chair role and giving up his ‘Golden Share’, which gave him greater voting powers over the business.
THG reiterates FY revenue guidance
Moulding remained upbeat on the group’s recovery. “Q3 has been another strong quarter of progress across the group, with each division delivering improved performances,” he said Tuesday.
“The pivots made within each division to ensure they thrive in a high inflation global environment are bearing fruit.”
Looking ahead, THG said its FY23 revenue and adjusted EBITDA remain unchanged. It expects revenue to be flat to down 5 percent.
Moulding continued: “Both our operations and inventory are well positioned ahead of peak trading, with the benefits of our investment in UK and US automated fulfilment centres enhancing the customer proposition through accelerated delivery times, positively influencing customer contact rates and overall satisfaction.”