What's Happening?
THG has announced its highest quarterly organic growth since Q4 2021, with a 6.3% increase in Group revenue for Q3 2025. This growth is attributed to double-digit gains in the Nutrition division and renewed momentum in Beauty. THG Nutrition, led by Myprotein's expanding market share, posted a 10% revenue growth. THG Beauty showed solid UK retail momentum and improved US performance, particularly in luxury skincare. The Q3 results exceed THG's H2 2025 guidance, with the Board reaffirming full-year expectations. CEO Matthew Moulding credits strategic initiatives and operational changes for the positive performance.
Why It's Important?
THG's strong Q3 performance marks a significant turnaround for the ecommerce group, highlighting the effectiveness of its strategic changes and investments in brand proposition. The growth in Nutrition and Beauty divisions reflects consumer demand for health and beauty products, indicating potential market expansion. This positive trajectory positions THG well for the upcoming key trading period, potentially boosting investor confidence and market competitiveness. The results also underscore the importance of adapting business models to meet evolving consumer preferences and market conditions.
What's Next?
With Q4 traditionally being THG's most profitable period, the company is poised to capitalize on its Q3 momentum. The anticipated announcement of new partnerships in the Nutrition division could further enhance growth prospects. THG's focus on subscription-based brands and expanding retail footprint may drive continued revenue increases. The company's strategic initiatives, including the demerger of THG Ingenuity and asset sales, have improved liquidity, positioning THG for future investments and expansion opportunities.
Beyond the Headlines
THG's growth highlights broader trends in ecommerce, particularly the increasing consumer preference for direct-to-consumer models and subscription services. The company's success in the Nutrition and Beauty sectors reflects a shift towards health-conscious and personalized product offerings. These trends may influence other ecommerce businesses to adopt similar strategies, potentially reshaping industry standards. THG's strategic changes also demonstrate the importance of agility and innovation in navigating market challenges and achieving sustainable growth.
