THG Q4 Earnings Call Highlights

THG (LON:THG) said it ended 2025 with “significant momentum,” pointing to its strongest 4th of the twelvemonth and a grounds 2nd fractional that absorption said was 14% up of the apical extremity of the company’s guidance range. On the call, absorption attributed the show to a tighter strategical absorption connected halfway categories and geographies, alongside operational streamlining actions and changes to the company’s footprint successful little rewarding markets.

For the 4th quarter, THG reported radical gross maturation of 7%, supported by what absorption described arsenic a palmy Cyber trading period. The institution said revenues were up astir 8% crossed November and December.

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Management said the spot successful the 2nd fractional helped THG present its “first full-year maturation since 2021,” describing the result arsenic a motion of resilience fixed macroeconomic challenges implicit the past fewer years.

THG Beauty posted fourth-quarter gross maturation of 6.4%, which absorption said was “well ahead” of guidance. The institution highlighted peculiarly beardown show from Lookfantastic successful the UK and Ireland, wherever gross roseate 16.2% successful the quarter.

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Management besides pointed to improving lawsuit metrics successful Beauty, saying loyalty rank continues to turn alongside walk per account, with retention rates astatine “all-time highs.” Executives said the Beauty strategy is progressively driven by a absorption connected higher-margin prestige brands, lawsuit acquisition improvements (including partnerships specified arsenic Uber Eats), and expanding own-brand visibility done retail collaborations.

On portfolio actions, absorption said optimization enactment successful Beauty is mostly complete. The institution referenced anterior strategical changes successful immoderate European and Asian markets and said those actions are present annualized, which it expects to enactment cleaner comparisons.

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Executives besides discussed the aboriginal show of the Lookfantastic carnal store successful Altrincham adjacent Manchester. While noting stores are extracurricular the CEO’s “personal wheelhouse,” absorption said the determination has traded “incredibly well,” producing some a halo effect for online and results amended than archetypal expectations (which assumed the store mightiness suffer immoderate money).

THG said it plans to grow its store footprint cautiously. Management stated a Bristol store is planned but has been delayed by fit-out and different issues. The institution said it would similar to physique a portfolio of stores implicit time, but emphasized a partnership-led attack wherever brands stock superior expenditures alternatively than THG backing openings alone. Management suggested it whitethorn unfastened the Bristol store positive different determination during the year, past proceed steadily.