Shares of The Hut Group (LON: THG) logged an all-time high yesterday after the company raised full-year revenue forecast after seeing a surge in demand in the third quarter.
The Hut Group reported that revenue rose 38.6% year-on-year to £378.1 million. A massive jump in revenue is a direct result of the surging direct-to-consumer online revenue, which grew 51.3% to £320.2 million.
As a result, the firm now expects revenue to come between £1.48 billion and £1.52 billion.
“In order to maintain this momentum the firm will rely on strong demand across its health supplement and beauty product sites through the Christmas trading period and upcoming Black Friday sales event,” said Russ Mould, an analyst AJ Bell.
Following yesterday’s trading update, analysts at J.P. Morgan initiated coverage of THG with an “Overweight” rating and 865p price target. The bank’s analyst Marcus Diebel described the company’s financials as “impressive”.
THG saw its shares gain over 30% in its first day of public trading in September. The firm initially sold 376 million shares for £1.88 billion while the THG share price now trades about 40% higher.
Shares trades around 0.5% in the red today and about 10% off the highs after printing 787.8p yesterday, the new all-time high.
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