THG Share Price Jumps on Record H2 Revenue, Beauty Sector Leads the Charge

THG (LON: THG), a prominent player in the e-commerce space, saw its share price rally more than 6% on Tuesday morning after it announced a stellar fourth-quarter trading statement for the period ended December 31, 2025, exceeding expectations and marking a strong finish to the year.

The company's shares are expected to see positive movement as markets react to the news of record H2 revenue performance, which landed approximately 14% ahead of the upper end of previous guidance.

Group H2 revenue increased by 6.7% year-over-year, significantly outpacing the guided range of 3.9% to 5.9%. THG Beauty emerged as a key driver, delivering H2 revenue growth of 5.5%, well above the anticipated 1.0% to 3.0%.

THG Nutrition also contributed positively, with 9.2% H2 revenue growth (12.7% excluding Asia), aligning with the guided 10.0% to 12.0%. Full-year 2025 adjusted EBITDA expectations remain unchanged and in line with company consensus.

Q4 2025 proved to be the strongest quarter for Group revenue growth, reaching 7.0%, building on the previous quarter's 6.3%. This momentum was fueled by a successful November and December, during which the company saw growth of approximately 8%, underpinned by robust commercial discipline. The Group achieved full-year revenue growth of 2.3%, marking the first year of growth since 2021 and a notable recovery from the H1 revenue decline of 2.5%.

THG Beauty's standout Q4 performance was its strongest since Q4 2021, driven by Lookfantastic's robust growth of 16.2% in the UK and Ireland. Cosmetics and Skincare categories demonstrated the strongest performance, gaining UK market share.

THG Nutrition delivered its fourth consecutive quarter of revenue growth, driven by pricing and strong growth in adjacent categories notably offline retail and gross margin accretive activewear and creatine. Myprotein maintained its position as the leading sports nutrition brand in the UK and Europe, holding a 25% share of the UK online sports nutrition market.

Driver Breakdown:

• THG Beauty Outperformance: Focus on core categories and territories, particularly the UK and Ireland, drove significant growth.
• THG Nutrition Resilience: Pricing strategies and expansion into adjacent categories, such as activewear, supported consistent revenue growth.
• Strategic Partnerships: Collaborations with global brands like Mars and retailers like Iceland broadened market reach and product offerings.

CEO Matthew Moulding commented, “We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period. In THG Beauty, our strategy to focus on core categories and territories is delivering clear results, with Lookfantastic UK achieving exceptional growth…We enter the new year with strong trading momentum and a clear focus on continuing to deliver quality, value and newness for our customers.”