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THG on Tuesday reported revenue growth in the third quarter, boosted by its Beauty and Nutrition units, which offset a steep decline in OnDemand.
The E-commerce retailer said its total revenue increased 2.1% in the third quarter to £518.6 million from £507.8 million.
THG shares rose 14% to 52.90 pence each in London on Tuesday morning. However, the stock is still a long way off its initial public offering price of 500p back in September 2020.
Its Beauty unit saw 4.9% growth, while Nutrition added 2.9%. Product personalisation unit OnDemand however fell by 19%.
Founded in 2008 by Alexia Inge and Jessica DeLuca, Cult Beauty, part of THG's Beauty unit, uses an e-commerce platform to stock around 300 independent makeup brands, such as Charlotte Tilbury, Living Proof and Molton Brown.
"Consumer behaviour during the third quarter remained stable and consistent, reflecting the resilience of beauty, health and wellness categories," THG, which trades as The Hut Group, said. It added that its fourth quarter has started positively.
For the nine months to September 30, revenue grew 8.8% to £1.60 billion from £1.47 billion a year prior. That period was boosted by Beauty which rose by 15% to £812.4 million from £708.4 million and brand-building platform Ingenuity with a growth of 14% to £155.8 million from £136.9 million. OnDemand was the only unit with lower growth than a year ago, receding by 7.4% to £75.6 million from £81.6 million.
Looking ahead, Chief Executive Officer & Founder Matthew Moulding said that the fourth quarter has started positively. "We are well positioned from a logistics and supply perspective to meet the significant uplift in demand anticipated during the cyber period, whilst continuing to deliver a high-quality customer experience," he said.
THG last week Monday announced that CEO Matthew Moulding, as well as THG cornerstone investor Qatar Holding LLC, bought up SoftBank Group Corp's entire stake in the e-commerce-focused company. THG said SoftBank sold 80.6 million shares at 39 pence each, for £31.4 million in total. Those THG shares had been worth some £480 million back in May 2021.
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