THG’s trading update on Tuesday showed a record revenue performance in the second half and outperformance in its Beauty division during Q4.
THG
The company said H2 (the six months to the end of December) saw group revenue up 6.7% year on year, well ahead of the 3.9%-5.9% guidance range.
THG Beauty delivered 5.5% adjusted H2 revenue growth, also easily ahead of its guidance that had been only around +1%-+3%. THG Nutrition was up 9.2%.
In Q4 alone, THG Beauty revenue rose 2.2% to £370.2 million and was up 6.4% on a continuing constant currency basis.
Overall, the company said Q4 was the strongest quarter of FY25 for the business, supported by a successful November and December performance.
And for the full year, revenue growth of 2.3% was the first year of growth since 2021 as well as an encouraging recovery from the H1 revenue decline of 2.5%.
As for THG Beauty specifically, its strength saw it turning in its best Q4 growth performance since Q4 2021. It was driven by Lookfantastic (+16.2%) in the UK and Ireland. But the effect of discontinued activities and asset disposals (including the sale of the luxury portfolio) impacted full-year and Q4 2025 reported revenue growth by 460bps and 370bps, respectively.
On the revenue growth side for its continuing operations, the company that also owns Dermstore and Cult Beauty said Beauty’s Q4 performance was broad-based across categories, “helping deepen penetration in established and high-growth segments. Cosmetics and Skincare drove the strongest performance, with both gaining UK market share, alongside a record advent contribution”.
Lookfantastic had partnered with Uber Eats, “allowing London-based customers access to same-day delivery for a range of curated beauty and fragrance essentials, further supporting its focus on streamlining the product discovery and purchase experience”.
Within Own Brands, the Perricone MD performance improved in the period after a “challenging” H1, “driven by investment in brand and formulation, alongside expanded B2B distribution”.
Also, 60 ESPA SKUs were launched in over 100 M&S stores and online, “building brand visibility and aid[ing] awareness for the luxury spa and skincare brand, leveraging access to the Sparks reward scheme members”.
CEO Matthew Moulding said: “We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period. In THG Beauty, our strategy to focus on core categories and territories is delivering clear results, with Lookfantastic UK achieving exceptional growth. We continue to accelerate our digital leadership, prioritising high-margin prestige brands and enhancing personalisation by increased use of AI and virtual tools.
“We enter the new year with strong trading momentum and a clear focus on continuing to deliver quality, value and newness for our customers.”
