THG Shares Rise on Strong Q1 Revenue Growth

Shares in THG (THG.L) rose over 7% in early trading following the release of its first-quarter trading statement for the period ended March 31, 2026.

The company reported its strongest Q1 revenue growth since the Covid-impacted year of 2021, marking a positive turn after a period of restructuring and strategic adjustments.

The headline figures reveal a robust performance across key divisions. Group revenue for Q1 2026 reached £393.1 million, representing a 7.0% increase in constant currency (CCY). THG Beauty led the charge with a 5.8% revenue growth, while THG Nutrition demonstrated an impressive 8.8% increase (12.1% excluding Asia).

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This growth translates into improved fundamentals and a renewed confidence in the company’s strategic direction. The company’s focus on higher-margin categories, pricing optimization, and strategic partnerships appears to be paying off, offsetting challenges such as elevated whey costs in the nutrition segment. Strongest Q1 cash flow performance in three years, underpinning full year free cash flow guidance of £25m to 50m

The positive results were driven by several factors. THG Beauty benefited from strong performance in the US market and a 7% order growth in the core UK market, with Lookfantastic outperforming the broader UK prestige beauty market. THG Nutrition saw growth across all channels, fueled by expansion into categories like activewear, creatine, hydration, and collagen.

Disruptions in the Middle East modestly impacted growth by approximately 30 basis points. The combined impact of disposals and discontinued activities reduced Group Q1 2026 revenue growth by 150bps, with the currency headwinds most pronounced in the US.

THG maintains its full-year guidance for 2026, signaling confidence in its ability to sustain this momentum. This outlook is underpinned by continued market share gains in key territories and the successful implementation of its pricing and product optimization strategies. The company continues to monitor developments in the Middle East with affected regions representing less than 1.5% of Group revenue in FY 2025, weighted towards THG Beauty.

Driver Breakdown:

• Beauty Boost: Strong US performance and UK order growth drive THG Beauty’s acceleration.
• Nutrition Expansion: Diversification into higher-margin categories mitigates commodity price pressures.
• Strategic Partnerships: Licensing and distribution deals expand reach and profitability in key markets.

CEO Matthew Moulding commented, “It is energising for everyone at THG to see such a strong start to 2026, building on the better-than-expected momentum we delivered in H2 2025,” reinforcing the company’s focus on sustainable growth and profitability.