The Hut Group sales jump 39% as shoppers increase online spending during pandemic

Company, which owns a collection of beauty brands and licences its technology platform to other firms, reports sales of £378.1m

The Hut Group founder and CEO Moulding poses in Manchester (Reuters)

Online beauty retailer The Hut Group saw sales rise 39 per cent in its latest quarter as the pandemic helped to boost internet shopping.

The group, which owns a collection of beauty brands and licences its technology platform to other companies, reported sales of £378.1m for the quarter to 30 September. Direct-to-consumer sales jumped by 51.3 per cent.

Revenues were already rising rapidly before the pandemic began and THG has since seen strong demand for hand sanitiser, vitamin C and hair dye.

In its first update since floating on the London Stock Exchange last month, THG raised its annual revenue target to between £1.48bn and £1.52bn. Last month, it told investors it expected to post revenues of £1.43bn for the year.

THG was valued at £5.4bn when it floated in London's biggest initial public offering since Royal Mail in 2013. Shares in the company rose 5 per cent on Monday to 708p.

Matthew Moulding, group chief executive and executive chairman, said: "I am pleased to report a strong period of trading in our first quarterly update as a public company, including an upgrade to revenue growth guidance for 2020.

"I would like to thank all our colleagues for their huge contribution to date."

AJ Bell investment director Russ Mould said: "E-commerce firm The Hut Group begins life as a public company very much on the front foot as it upgrades revenue guidance in its maiden trading update.

"Whether this is thanks to an unexpected trading boost or just canny management of investors' expectations, it should help keep sentiment towards the company in a positive place after a strong start in share price terms to life as a listed entity.

"In order to maintain this momentum, the firm will rely on strong demand across its health supplement and beauty product sites through the Christmas trading period and upcoming Black Friday sales event."