THG Beauty and Nutrition Shine in Q3 Driven by Strong Organic Growth
THG delivered encouraging news with its Q3 trading statement, reporting its strongest quarter of organic sales growth since 2021. The three months ending September saw robust revenue growth on a continuing basis, reflecting accelerating momentum within its key segments. Both THG Beauty and THG Nutrition experienced heightened growth during this period, signaling a positive trajectory for the e-commerce giant.
While total revenue for the quarter rose by 2.4% to £405.2 million, the performance on a continuing basis painted a clearer picture of underlying strength, with revenue increasing by 6.3%. Similarly, THG Beauty, despite a total revenue decrease of 1.2% to £258.2 million, recorded a significant 4.2% rise on a continuing basis. The discrepancy between total and continuing figures is largely attributable to the combined impact of disposals and discontinued activities, which reduced group year-to-date and Q3 revenue growth by 340bps and 270bps, respectively.
In the Beauty division, THG has strategically divested its luxury portfolio and discontinued several non-core activities. Despite these adjustments, the company remains confident in its outlook, anticipating Beauty sales for the second half of the year to grow between 1% and 3%, with the crucial Golden Quarter just commencing. The third quarter's strong performance has positioned Beauty for a record advent sales contribution in 2025. This growth is further supported by solid momentum in UK retail, including double-digit revenue growth for Lookfantastic, and impressive contributions from newly launched brands. The 4.2% overall revenue growth in Beauty marks its highest since Q1 2024, underpinned by an improving US retail performance driven by luxury skincare and devices, alongside growing customer subscriptions enhancing order frequency and lifetime value.
The majority of the observed revenue decline in 2025 can be attributed to the sale of the luxury portfolio, other asset disposals, and the commercial decision to withdraw from certain sales activities in Europe and Asia. However, the largest of these influencing factors has now annualized, suggesting a clearer path for future comparable growth. Matthew Moulding, CEO of THG, commented on the results: “In THG Beauty, our focus on commercial discipline and elevating the brand proposition has driven a return to revenue growth, supported by a strong advent launch. Our progress is a direct result of the strategic initiatives and operational change we have implemented, and we are well positioned for the key trading period ahead.”
