THG hails strong beauty division performance in Q3

THG’s Q3 trading statement had good news on Tuesday with the strongest quarter of organic sales growth since 2021 and revenue up strongly on a continuing basis.

The three months to the end of September saw accelerating growth in both THG Beauty and THG Nutrition.

Total revenue rose only 2.4% to £405.2 million but on a continuing basis it rose 6.3%. And while total Beauty revenue fell 1.2% to £258.2 million, on a continuing basis it rose 4.2%.

The combined impact of disposals and discontinued activities reduced group year to date and Q3 revenue growth by 340bps and 270bps, respectively.

In Beauty, the company has discontinued a number of activities and sold its luxury portfolio.

But the company continues to expect Beauty sales for the second half as a whole to rise between 1% and 3% (with the key Golden Quarter having only just started).

THG said Q3 put Beauty on track for a record advent sales contribution in 2025. Combined with solid momentum in UK retail (including double-digit revenue growth for Lookfantastic) and impressive contributions from newly launched brands, that overall revenue growth of 4.2% was the highest since Q1 2024.

US retail performance continued to improve, driven by category growth in luxury skincare and devices, with growing customer subscriptions supporting order frequency and lifetime value improvements.

The sale of the luxury portfolio and other asset disposals, alongside the commercial decision to withdraw from certain sales activity in Europe and Asia, accounted for the vast majority of the revenue decline seen so far in 2025. But the largest of these factors has now annualised.

CEO Matthew Moulding said of all this: “In THG Beauty, our focus on commercial discipline and elevating the brand proposition has driven a return to revenue growth, supported by a strong advent launch.

“Our progress is a direct result of the strategic initiatives and operational change we have implemented, and we are well positioned for the key trading period ahead.”