Online retailer The Hut Group hikes full-year revenue guidance
Online retailer The Hut Group (LON:THG) said revenue this year will be stronger than previously anticipated as it entered the crucial Christmas trading period, with Black Friday expected to boost sales.
THG, which raised £1.88bn when it listed on the London Stock Exchange last month, this morning raised full-year 2020 revenue guidance to between £1.48bn and £1.52bn.
Previously, it had forecast revenue of around £1.43bn, representing a growth rate of 25 per cent.
THG said the fourth quarter “remains a key and important trading period each year”, accounting for 30 per cent to 32 per cent of annual revenue, “with Black Friday playing a key role”.
Group revenue in the third quarter jumped to £378.1m, a growth of 38.6 per cent year on year, the firm said in its first market update since its initial public offering (IPO) in September.
The Manchester-based online retail giant is valued at around £5.4bn following its stock market listing, which the firm said is the UK’s largest ever technology IPO.
In the three months ended 30 September, THG also expanded its technology arm Ingenuity and acquired beauty brand Perricone MD.
Chief executive Matthew Moulding 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.
“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 London Stock Exchange 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.”