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(Alliance News) - Online retail platform THG PLC on Tuesday refuted a newspaper report that suppliers of beauty products are restricting supply due to concerns over aggressive discounting.
The Telegraph on Saturday had said brands such as Dermologica, owned by Unilever PLC, have reduced supply to protect pricing.
THG responded that Dermologica has placed no restrictions on its trading relationship with THG Beauty, nor is looking to do so. THG said it has had a 10-year relationship with Dermalogica that "remains very positive".
The company also noted that revenue generated for THG from Dermalogica products is insignificant at about 0.1% of 2021 sales. THG added more than 200 net new beauty brands to its retail destination websites last year, it said.
THG said it is "not aware of any other key supplier to THG Beauty who has or who intends to reduce supply or take any similar steps in relation to THG Beauty."
The Telegraph had cited an unnamed industry source saying that other suppliers were taking similar action against THG websites such as Lookfantastic.
THG shares fell 10% on Monday but were up 3.2% at 106.70 pence early Tuesday in London.
The company said on Tuesday it "knows of no notifiable reason for the share price movement" on Monday.
THG has been under pressure from investors due to the poor performance of its shares since listing at 500p in September of 2020. The company's market capitalisation currently stands at GBP1.38 billion, having listed with a market value of GBP5.40 billion.
By Tom Waite; thomaslwaite@alliancenews.com
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