THG (LON:THG) Issues Quarterly Earnings Results

THG (LON:THG) issued its earnings results on Thursday. The company reported GBX (0.04) EPS for the quarter, Digital Look Earnings reports. THG had a negative return on equity of 35.25% and a negative net margin of 8.04%.

Here are the key takeaways from THG’s conference call:

• THG reported a strong FY25 with adjusted EBITDA of GBP 76.6 million, meaningful deleveraging, debt facilities extended to end‑2029 and over GBP 330 million of cash and available facilities providing material financial flexibility.
• The group has VAT claims totalling around GBP 78 million, expects a resolution later this year, and says the outcome combined with free cash flow could broadly halve net debt by year‑end.
• THG Beauty delivered record brand and exclusive product launches, gained share in core markets (notably LOOKFANTASTIC U.K.), and expanded new channels including becoming the largest UK beauty retailer on TikTok Shop, supporting differentiation and growth.
• Myprotein and THG Nutrition showed H2 momentum (nearly 10% H2 growth), strong licensing/offline expansion and rising brand awareness—including a fast‑growing activewear category—but profitability remains exposed to record‑high whey/commodity prices that could cause near‑term margin volatility.
• Outlook for 2026 targets mid‑single‑digit group revenue growth, year‑on‑year gross margin improvement and meaningful EBITDA progression driven by sales, margin mix and OpEx/AI savings, with expected free cash flow of GBP 25–50 million.

THG Stock Up 8.4%

LON THG traded up GBX 2.64 during trading on Thursday, reaching GBX 34.10. 24,061,947 shares of the company’s stock traded hands, compared to its average volume of 8,028,223. THG has a 12-month low of GBX 22.90 and a 12-month high of GBX 52.55. The company has a debt-to-equity ratio of 141.80, a current ratio of 1.03 and a quick ratio of 0.89. The firm has a market cap of £531.18 million, a price-to-earnings ratio of -3.41, a price-to-earnings-growth ratio of -0.08 and a beta of 2.60. The company’s 50 day simple moving average is GBX 35.38 and its two-hundred day simple moving average is GBX 39.85.

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. reiterated a “neutral” rating on shares of THG in a report on Monday, January 19th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, THG has an average rating of “Moderate Buy” and a consensus target price of GBX 55.

Insider Activity

In other THG news, insider Matthew Moulding acquired 24,395,170 shares of the business’s stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average cost of GBX 35 per share, with a total value of £8,538,309.50. Corporate insiders own 22.90% of the company’s stock.

About THG

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age.

We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel.

THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities.

THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.