THG enhances tech capabilities as Q3 sales soar

The Hut Group (THG), which listed on the London Stock Exchange (LSE) in September as THG Holdings, has reported year-on-year sales growth of 38.6% to £378.1 million for its third quarter as well as a host of new initiatives and innovations.

In the three months to 30 September, its lifestyle and beauty divisions led the way with sales increases of 79.6% and 45% respectively.

The group also expanded the functionality of its Ingenuity technology platform, parts of which are used by third-party brands such as Nestle and retailers including Hotel Chocolat and Homebase. Revenue from this part of the business was up by 10.1% year on year in the three-month period.

Three new warehouses – in the US, UK and Singapore – opened, bringing the group’s total to 17 warehouses and fulfilment sites across four continents, which are all supported by 'Voyager', THG's proprietary warehouse management system.

The group added 12 new integrated couriers during the period, meaning it now offers over 25 different service options as part of its infrastructure offering. It also unveiled 'Omniverse', its proprietary customer services social platform, which is integrated into Facebook to expedite shopper interactions.

Following the strong quarter, THG said it is raising full-year revenue guidance from the £1.43 billion it stated at the time of its IPO to circa £1.48 billion to £1.52 billion. It added that the fourth quarter typically accounts for 30% to 32% of group revenue each year, with Black Friday playing a key role as reported by Essential Retail in a special feature last year.

Matthew Moulding, group CEO & executive chairman, commented: "Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period.

“Our decision to list on the LSE provides us with a strong platform to raise the profile of both Ingenuity and our brands, and further supports their strong organic growth. Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.”