THG shares rose on Tuesday after delivering its best first-quarter revenue growth since the pandemic, with sales rising 7.0% on a continuing, constant-currency basis to £393.1m, as both Beauty and Nutrition gained momentum.
THG shares rose around 8% as the market digested a trading statement revealing growth across the board.
Beauty revenue grew 5.8%, accelerating on the 5.4% delivered in the second half of last year, driven by a strong performance in the US and 7% order growth in the core UK market.
Lookfantastic continued to outperform the UK prestige beauty sector, adding active customers and gaining share. In the US, Dermstore grew revenue and expanded market share on the back of a 10% increase in new customers and a new checkout partnership with Flex, allowing shoppers to pay with pre-tax health savings accounts. K-Beauty was a standout, with revenue more than doubling year-on-year.
Nutrition grew 8.8%, or 12.1% excluding Asia, where a deliberate shift to licensing with local manufacturing partners has created a near-term drag as the business rebuilds on higher-margin foundations.
The division is leaning heavily into categories beyond core protein powders, such as activewear, creatine, hydration and collagen, to offset record whey commodity prices.
Activewear now has an annualised run rate approaching £100m, with around 15% of active customers buying into the range in Q1 and those orders carrying average order values roughly 31% higher than the norm.
Myprotein’s retail footprint is expanding rapidly. The brand hit record UK market share in total sports nutrition and has a string of launches lined up for Q2 and Q3, including branded bays in Tesco stores nationwide, entry into 1,200 Kroger locations in the US, and expanded listings with GNC and Vitamin Shoppe.
Investors will have been pleased to see THG reiterate its full-year guidance. CEO Matthew Moulding said the better-than-expected start gives THG a stronger base heading into the rest of the year, even as the geopolitical backdrop remains uncertain.