THG has posted strong sales growth in the first quarter of 2024, which it said was led by a “standout performance” across its beauty division.
The Cult Beauty and LookFantastic owner saw a 4.5% jump in revenue compared to the previous year as total sales edged up 0.3% on a continuing basis, reaching £459.9m.
THG Beauty sales surged 11.1%, driven by a “notably strong” performance in the UK.
The business cited successes in changes to its operating model, as well as historic investments in fulfilment and tech and a burgeoning loyalty scheme as other key successes.
Chief executive Matthew Moulding said: “Following the Group’s return to revenue growth in Q4 2023, it’s pleasing to report an acceleration in Q1, which is testament to the hard work and dedication of our people, who’ve remained focused on the task in hand despite the tough macro-economic backdrop.
“It’s also clear that the accelerated infrastructure investments made during 2019-2022, specifically into our fulfilment network and tech capabilities, are playing a significant part in delivering competitive advantage. With this major capex program behind us, these investments will continue delivering meaningful savings, which accelerate further as new Ingenuity partners are onboarded.
“The Q1 performance of our largest business THG Beauty, is especially encouraging. The operating model changes made throughout 2023, including focusing on more profitable territories and customers, temporarily impacted growth for much of last year, however, since Q4, we are seeing tangible benefits from these actions. This is reflected in THG Beauty’s loyalty membership reaching 2.3m people at the end of Q1, less than two years after launch.”
The company also highlighted the addition of US brand Biossance to its portfolio, adding it has the potential to “scale to become one of our largest own brands” after early “positive” signs.
