THG, The Hut Group, reported a noteworthy 1.1% increase in revenues during Q4, marking a return to growth. The surge was primarily attributed to the beauty division, which witnessed a robust 2.6% rise in revenues, totaling £387 million in the same quarter. THG’s own beauty brands, Perricone MD and ESPA, along with the retail platform Cult Beauty, played pivotal roles in driving this growth.
The UK market, contributing over half of the total beauty revenue, displayed a commendable 9% increase in revenue growth. However, on a year-over-year basis, THG’s beauty revenues experienced a decline of 4.3%, amounting to £1.17 billion.
CEO Matthew Moulding likened the company’s growth journey to the challenges depicted in the Netflix series Squid Game. He acknowledged the difficulties faced in 2023, highlighting business casualties resulting from rapidly rising interest rates and scarcity of capital and debt, especially in the UK.
While acknowledging the hurdles faced during 2023, Moulding expressed satisfaction in how the group not only responded to challenges but also grew stronger. Automation and significant cost initiatives from 2022, combined with a receding inflationary environment, contributed to the group’s expected record EBITDA performance in 2023.
In addition to the growth in beauty, THG extended its partnerships, collaborating with wellness retailer Holland & Barrett. The company will provide fulfilment services to Holland & Barrett through its operations and technology platform, Ingenuity.
THG’s $20 million acquisition of US beauty brand Biossance, completed in late December 2023, signifies its strategic expansion.
Despite uncertainties in the economic landscape, Moulding remains optimistic, citing signs of consumer cost of living pressures easing in 2024. He expressed confidence that the group’s investments and decisions throughout the year position them well to build upon the positive exit momentum.
This positive growth in Q4 follows the revenue recovery observed in THG’s third-quarter performance. While challenges emerged during the year, THG’s resilience, strategic decisions, and investments positioned the group for a promising future.
GlossyBox UK, as a THG brand, has played a pivotal role in Mudmasky’s journey, providing a dynamic platform to showcase its exceptional skincare products to a broad audience. The association with THG has not only facilitated Mudmasky’s presence in the beauty and skincare industry but has also contributed to its continuous growth and recognition.
Through the collaborative efforts within the THG family, Mudmasky has been able to navigate the ever-evolving beauty landscape, staying at the forefront of industry trends and consumer preferences. The shared expertise, synergies, and strategic support within THG have undoubtedly been instrumental in Mudmasky’s success story here in the U.K.
