The Hut Group(THG) reports strong Q FY25 with 7% revenue increase
This was its best quarterly performance of the year.
UK – THG Beauty, a UK-based beauty retailer, ended 2025 on a strong note, reporting a 7% revenue increase on a constant-currency basis in Q4.
This capped a solid H2 with 6.7% year-on-year revenue growth, 14% ahead of guidance, and marked the group’s first full-year revenue growth since 2021 at 2.3%.
Matthew Moulding, THG CEO, stated, “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.”
He credited exceptional growth at Lookfantastic UK, prioritizing high-margin prestige brands, and accelerating features such as virtual tools.
THG Beauty outperformed, with 5.5% H2 revenue growth, exceeding its 1-3% guidance, and Q4 revenue hit £370.2 million (USD 470.2 million), up 6.4% on a constant-currency basis despite discontinued activities.
This was the division’s strongest Q4 since 2021, powered by strength in skin care and cosmetics, new and long-term customer gains, and Lookfantastic’s 16.2% UK/Ireland growth.
Disposals like the luxury portfolio, Europe/Asia exits, and Claremont Ingredients reduced reported FY growth by 5.4% (460bps impact) and Q4 by 290-370bps, but these effects are now annualized for 2026 stability.
Lookfantastic led UK acceleration with broad category gains, market share in cosmetics/skin care, record advent calendars, and Uber Eats same-day delivery in London.
Own brands recovered: Perricone MD regained momentum via investments, formulations, and B2B expansion; ESPA launched 60 SKUs in over 100 Marks & Spencer stores/online, leveraging loyalty programs.
November/December revenue grew 8%, signalling confidence in Q1 2026, with a liquid balance sheet supporting a prestige focus, AI, and own-brand investments such as ESPA and Perricone MD.
FX headwinds eased by Q4 (yen/dollar offset by euro); Nutrition grew 9.2% H2; shares rose 5.2% post-results amid operational turnaround.
THG Beauty offers a wide portfolio across skincare, haircare, cosmetics, and fragrance, combining its own brands with over 1,300 third‑party prestige beauty labels through online retailers like LOOKFANTASTIC, Cult Beauty, and Dermstore
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