THG’s first-half results on Thursday were in line with its guidance as the company returned to revenue growth in Q2 and saw a positive start to the second half. Not that the figures for the first six months of the year looked particularly impressive, but the company seems to be upbeat as business is moving in the right direction.
THG
It said that “trading momentum from Q2 into Q3 continues to build positively, with the strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 now bearing results. This momentum underpins confidence in full year and medium-term outlook”.
And it added that the successful THG Ingenuity demerger at the start of H1 alongside the Q3 disposal of Claremont Ingredients for £103 million, puts it on an “accelerated path towards a net cash position, with the H1 2025 refinancing securing long-term committed facilities”.
So let’s look at the H1 numbers and the H2 outlook with a particular focus on its Beauty ops.
THG revenue was £783.4 million, which was down 2.6% on a constant currency basis. The gross margin dipped to 41.1% from 42.6%, reflecting price impacts in its Nutrition business but is expected to return to growth for the second half.
Adjusted EBITDA fell to £24 million from £37.1 million a year ago in line with the trading update it issued last month. The result was weighted towards Q2 with Q3 expected to be “meaningfully higher”. That comes as the company said it’s seeing its strongest trading performance of the year so far in the third quarter.
Revenue at THG Beauty dropped 5.9% in the first half on a constant currency basis and was down 12.4% on a reported basis at £479.9 million.
THG Beauty’s gross profit fell 14.8% to £190.4 million in the first half and adjusted EBITDA for the division was down 29.4% at £20.2 million, primarily reflecting the revenue and gross profit result. But this was partially offset by distribution cost efficiencies from increased UK participation. Lifecycle investment and B2B order phasing (across own-brands and manufacturing) also contributed to the change.
For H2, THG Beauty is expected to deliver revenue growth of 1%-3%.
Digging into the details of the Beauty performance, THG said that it saw “resilient retail trading with Q2 2025 UK growth at its highest rate since Q1 2024, supporting market share gains”.
The effect of withdrawing from certain sales activity in Europe and Asia, as well as various non-underlying items such as asset disposals including the luxury portfolio, contributed over 900bps of the revenue decline in H1, with these factors mainly annualising in Q3 2025.
But new brand launches drove growth and engagement, with over 70 launched year to date, including Gucci Beauty. Revenue from new brands is expected to be up 50% vs 2024 “with future personalisation developments supporting product discovery including integrating diagnostic technology and tailored product recommendations for specific looks and concerns”.
LookFantastic loyalty members continued to grow in H1, reaching 3.2 million members, “with consumer preference surging by 54% (Q1 to Q2). This reflects the ongoing strategy to develop and deploy learnings from an evolved marketing measurement framework, focused on incremental efforts, demand generation and brand tracking to drive greater brand awareness and a higher quality of recurring customer”.
CEO Matthew Moulding said: “I’m really pleased at how THG has gained momentum throughout the first half and into Q3. A slower start to the year in Beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales.
“As a business we’ve reaped the benefits of the recent extensive strategic initiatives across the group. Our Beauty business particularly in the UK demonstrated impressive resilience, securing market share gains in Q2, with a growing loyalty base and successful new brand launches supporting a return to revenue growth in Q3.”
Calvin Klein opened on Tuesday a new global flagship in New York City, marking the brand’s return to its hometown.
Calvin Klein opens new flagship store in SoHo, New York. – Calvin Klein
Located at 530 Broadway in SoHo, the over 3,000-square-foot store draws inspiration from New York’s signature loft apartments, characterized by open wood ceilings, cast columns and concrete flooring, paired with neutral tones and stainless steel fixtures.
Meanwhile, the store’s exterior is finished in the brand’s charcoal tone, with large windows displaying a seasonal visual concept created in partnership with Perron Studios.
The store features curated spaces with denim and underwear at the center of the assortment, alongside men’s and women’s apparel and accessories. Beginning in spring 2026, the location will offer select styles from Calvin Klein Collection during designated periods. To mark the opening, the SoHo flagship is releasing a limited capsule collection of tees, sweatshirts, hats and totes featuring custom Calvin Klein SoHo branding.
“We are proud to return to one of the world’s most fashionable cities – and the birthplace of our iconic brand – with an elevated retail expression,” said David Savman, global brand president, Calvin Klein.
“This new global flagship, located just steps from our landmark Houston Street billboard, is a tribute to Calvin Klein’s New York heritage. It represents both the evolution of our retail experience and a tangible expression of the world of Calvin Klein. Calvin Klein embodies a distinctive, global way of living that meets culture, and this store is the latest step on our journey of taking our brand to the next level.”
The store follows recent flagship openings in Paris and Tokyo and reflects the company’s strategy to create premium lifestyle destinations built around its minimalist design DNA.
“New York is central to the DNA of the Calvin Klein brand,” added Stefan Larsson, CEO, PVH Corp.
“This homecoming is a key milestone as we build Calvin Klein into one of the most desirable lifestyle brands in the world. Step by step, we’re deepening brand relevance, driving consumer engagement and strengthening brand positioning across North America and globally.”
The Italian competition authority said on Tuesday it had opened two investigations into Swiss watchmaker Swatch and Japan’s Citizen Watch.
Reuters
The probes involve an alleged infringement of European rules on the fixing of retail prices displayed online by the groups’ authorised distributors.
The two companies may be limiting price competition among their retailers through a vertical agreement, by imposing retail prices on their distributors and adopting “retaliatory commercial measures” against those that fail to comply, the antitrust authority said in a statement.
The agency’s officials carried out inspections at the Italian offices of Swatch and Citizen on December 3.
Swatch and Citizen did not immediately respond to a request for comment.
British retail tycoon Mike Ashley has pledged around 670 million pounds ($890.6 million) worth of shares in his sportswear and fashion retailer Frasers Group Plc as collateral for a loan from HSBC, according to filing on Tuesday.
Reuters
Ashley’s holding company, MASH Beta Limited, which holds the majority of Frasers’ issued share capital, pledged about 103.6 million ordinary shares.
Frasers’ shares were down about 1.3% at 646.5 pence as of Tuesday’s last close.
This move comes after the company’s heavy investments in newer geographies and taking or increasing shareholding in recent months across companies, from fashion groups to electrical retailers. Mike Ashley holds roughly a 73% stake in Frasers, according to data compiled by LSEG.
The company whose portfolio includes Sports Direct, House of Fraser and Flannels, reaffirmed its full-year profit forecast earlier this month.
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