Shares of THG PLC (LON: THG) after announcing that its Q4 2020 revenues were 51% higher than last year due to the sales surge witnessed in December during the Christmas shopping season.
The company is formerly known as The Hut Group before shortening its name to THG Plc also upped its revenues forecasts for 2021 following the acquisition of US retailer Dermstore.com between Christmas and New Year.
The retailer generated £558.7 million in sales during Q4 2020, a 51% improvement to 2019 figures, which was much higher than the 40-45% growth estimates issued in early December.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
THG’s largest division ‘beauty’ registered substantial growth netting £298.2 million in sales, a 66% increase, while its nutrition segment led by its MyProtein brand generated £158.2 million in sales equating to 40% growth.
The group owns beauty brands including ESPA, Illamasqua and Glossybox, supplier Acheson & Acheson, which are sold via specialist sites.
THG’s lifestyle division also known as OnDemand registered the largest percentage increase by growing revenues 81% to reach £42.4 million.
The group’s Ingenuity third-party e-commerce platform grew sales 16% to £40.3 million by winning contracts with GlaxoSmithKline for its vitamins, Dulux paints, Vimto drinks and fragrance brand Creed.
THG share price
THG shares today spiked 6.02% higher to trade at 837.6p having risen from Monday’s closing price of 790p, but later gave up most of its gains.