THG PLC (LSE: THG) posted its best quarter of organic sales growth in nearly four years, with third-quarter revenue rising 6.3% year-on-year on a continuing, constant currency basis. The London-listed e-commerce and wellness platform said the performance marked a return to group-level growth for 2025, lifting investor sentiment and pushing the share price up 11.6% to GBX 41.76 by October 14, 2025.
The third quarter performance reflected accelerating momentum in both the THG Beauty and THG Nutrition divisions, following structural reforms and brand portfolio rationalisation. Group revenue for the period stood at £405.2 million, reversing earlier softness and bringing the year-to-date revenue to £1.18 billion, now marginally in growth territory at +0.3% in constant currency for continuing operations.
The surge in share price positions THG among the top FTSE 250 gainers in mid-October, with retail investors and institutional buyers reacting positively to the return of top-line growth and reaffirmed full-year guidance.
What has changed in THG’s business model to enable this organic growth rebound in Q3 2025?
The company attributed the turnaround to its strategic exit from low-margin or underperforming operations and markets, including the sale of its luxury beauty portfolio and other discontinued activities across Europe and Asia. These disposals collectively shaved 270 basis points off quarterly revenue and 340 basis points off the year-to-date number. Despite these headwinds, THG posted its strongest quarter since Q4 2021.
The divestment of Claremont Ingredients, a non-core asset from the nutrition vertical, also impacted reported growth by approximately 30–40 basis points. These exits were part of a broader simplification strategy aimed at reducing operational complexity, consolidating brand identity, and focusing on more profitable, scalable verticals.
Institutional sentiment had remained cautious over the past year amid concerns around THG’s balance sheet flexibility and execution risk. However, the Q3 2025 results suggest that the group is entering a more disciplined and focused growth phase, aligning with broader e-commerce sector trends around brand consolidation and channel efficiency.
How is THG Nutrition outperforming and what role does Myprotein’s offline expansion play?
THG Nutrition delivered a standout performance, reporting a 10% year-on-year increase in Q3 revenue, the highest growth rate in over two years. The segment, anchored by the Myprotein brand, saw robust demand across both online and offline channels. Growth was further supported by strategic pricing initiatives, new product innovation, and aggressive expansion into retail distribution.
A highlight of the quarter was Myprotein’s entrance into the United States retail market via 2,500 CVS Pharmacy stores, led by the Clear Whey protein range. THG also reported further penetration in the Middle East, with Myprotein products now available across Spinneys Supermarkets in three distinct product categories.
Customer subscriptions rose 50% compared to the first half of 2025, reflecting stronger brand stickiness and a shift toward recurring revenue models. Social commerce and marketplace channels—often used for exclusive product launches—grew more than 91% year-on-year, showing the impact of multi-channel sales optimization.
New product collaborations continued to deepen brand engagement. These included the expansion of Jimmy’s Iced Coffee into powder and bar formats, the co-launch of Müller Protein Mousse desserts, and chilled ready meals in partnership with Kirsty’s. THG also launched over 30 hydration and endurance-focused SKUs with HYROX, a global fitness racing brand.
Additionally, THG Nutrition signed a strategic partnership with Frasers Group’s Everlast Gyms to roll out approximately 60 in-gym “Myprotein Kitchens” across the UK and Ireland. These will offer exclusive nutritional products alongside co-working and social spaces, pushing the brand deeper into integrated fitness lifestyle offerings.
How has THG Beauty stabilised post-luxury portfolio sale and what is driving Q3 growth?
THG Beauty saw revenue decline 1.2% year-on-year in Q3 in reported terms, but grew 4.2% on a continuing, constant currency basis—the division’s best quarterly performance since Q1 2024. Management attributed the growth to a strong advent calendar launch, robust UK retail momentum, and a strategic focus on high-performing own brands.
The Lookfantastic platform posted double-digit revenue growth during the quarter, helping to offset the drag from luxury portfolio disposals. U.S. sales performance also improved, led by rising demand for luxury skincare and beauty devices. Subscription revenue in the beauty segment grew 22% year-on-year, translating into higher order frequency and customer lifetime value.
The company also relaunched its Ameliorate skincare range using Prevented Ocean Plastic™ (POP) packaging, aligning with THG’s ESG commitments. The updated product line is now available across both direct-to-consumer (D2C) and offline channels.
The management team clarified that the commercial withdrawal from certain Asian and European activities was a deliberate move to prioritize margin-accretive operations. These pullbacks have now largely annualised, meaning comparisons in upcoming quarters will be less distorted by prior exits.
How have THG shares reacted to the Q3 2025 results, and what are institutional investors indicating about confidence in its turnaround strategy?
Shares of THG PLC rallied sharply after the trading statement, rising 11.6% to GBX 41.76 by the close on October 14. This marks one of the largest single-day percentage gains for the stock in 2025, driven by investor optimism around improved visibility, margin potential, and topline resilience.
Analysts interpreted the Q3 results as a validation of THG’s strategic realignment, particularly the renewed focus on recurring revenue and international retail partnerships. While the company has yet to provide updated margin guidance, the return to revenue growth has helped re-anchor valuation discussions around profitability rather than risk.
The stock’s trading volume surged on the day of the release, indicating institutional accumulation and renewed interest from growth-oriented funds. With the group now entering what it calls its “most profitable and cash generative period,” fund managers are watching closely for sustained Q4 delivery, particularly during the peak holiday season.
What is THG’s full-year 2025 outlook and how is it tracking against internal guidance?
The Board has reiterated full-year guidance, with H2 2025 revenue expectations set between 1% and 3% growth for THG Beauty, and between 10% and 12% for THG Nutrition. This implies a group-level growth forecast of 3.9% to 5.9%. The 6.3% group growth in Q3 positions THG favourably to either meet or exceed the upper end of that range.
No changes were made to profitability forecasts, which management said remain “in line with company consensus.” The strong advent calendar launch in beauty, combined with holiday retail seasonality and Myprotein’s expanded footprint, is expected to support topline acceleration in Q4 2025.
Institutional investors are expected to closely track subscription metrics, pricing discipline, and geographic mix heading into the final quarter. Any guidance updates in the next trading update could shift buy-side sentiment depending on gross margin commentary and promotional intensity.
What are the key watchpoints for THG heading into Q4 and FY26?
Investors and analysts will monitor how THG executes during the crucial Q4 holiday period, which historically accounts for a disproportionate share of full-year profitability. A key area of focus will be gross margins—particularly in the context of sector-wide promotional activity and input cost inflation.
Another watchpoint is the ongoing integration and performance of offline retail partnerships. CVS Pharmacy in the U.S. and Spinneys in the Middle East represent significant new channels, and their sell-through rates during Q4 will offer insight into long-term sustainability.
The company has also hinted at “a number of exciting new partnerships” to be announced in the coming months. If these include high-impact co-branding deals or entry into additional retail chains, they could serve as catalysts for further upward stock re-rating.
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