Shares of THG Holdings PLC (LON: THG) today surged 9.36% after the e-commerce company hiked its full-year revenue forecast for the second time in two months driven by strong demand during Black Friday and the cyber week shopping period.
The firm announced that it now expects 2020 revenues to grow by between 38% and 40% as compared to the previous estimate of a 30% to 33% increase. The company now expects full-year revenues of between £1.57 billion ($2.10bln) and £1.60 billion.
The Hut Group expects Q4 revenues to surge 40% to 45% as compared to last year, which is a significant improvement to the previous estimate of 16% to 25% growth. The group acquired 1.7m million new customers in November, over half of which joined during the Cyber Week.
THG has recently been the subject of intense public scrutiny after its CEO Matthew Moulding was awarded £830 million after the company’s valuation hit certain targets set during its IPO on the London Stock Exchange.
The stock later gave up most of its gains to trade just 3% higher at the time of writing. It remains to be seen whether investors shall keep buying THG stock in future given the public outcry regarding the excessive pay to its top executives and shareholders.
THG Holdings share price
The Hut Group shares surged 9.36% today to trade at 709.8p having rallied from today’s opening price of 649p.