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The Hut Group Q4 revenue jumps 51%

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The Hut Group saw Q4 sales come in ahead of expectations, thanks to a 3.5m boost in new customers.

Revenues in the three months to December 31 were up by 51% year-on-year, this was more than the expected 40-45% increase.

Group revenue for the fourth quarter was £558.7m, up from last year’s £370.0m. Revenue was boosted by the firm’s acquisition of Dermstore.com and growth in demand for beauty products, which soared by 66%.

Over the fourth quarter, the group added 3.5m new customers. Over the whole year, The Hut Group saw an increase of 10.7m.

Matthew Moulding, Executive Chairman and CEO commented: “I am pleased to report another strong performance through Q4 2020, during what has been a transformational year for THG. Due to the focus and dedication of our rapidly growing global workforce we have delivered some significant milestones in 2020.

“Following our successful listing on the London Stock Exchange in September 2020, we have accelerated our sales growth across all areas of the Group, underpinned by record new customer numbers. We have also started reinvesting capital raised at IPO, including over £360m in M&A, principally within the US beauty sector.

“Furthermore, we have also invested significantly in our people, creating 3,000 new jobs during 2020, largely within the U.K, but also across our international operations. During 2020, we have made significant progress in commercialising our Ingenuity Platform, fast becoming a major global player in taking brands direct to consumers.

“Each of these milestones further underpin THG’s strategic growth pillars outlined at IPO, giving management significant confidence when looking ahead to 2021 and beyond, and driving the increase in our guidance for the year ahead,” he added.

The Hut Group shares (LON: THG) are trading 2.66% higher at 811,00 (0849GMT).