UK e-commerce company THG PLC, also known as the Hut Group, has announced a decline in group revenue over the third quarter of the year. Despite this, the company remains optimistic and has backed its full-year guidance.
Q3 Revenue Performance
THG reported a 4.4% decline in revenue on a statutory basis for the quarter, and a 2.1% decline on a constant currency basis. Among its divisions, the beauty sector saw a 4.4% decline, nutrition fell by 4.6%, and ingenuity experienced a downturn of 8.8%.
Full-Year Guidance
Despite the challenges faced in Q3, THG maintains its full-year revenue guidance of 0% to minus 5%. Additionally, the company reaffirmed its adjusted earnings before interest, taxes, depreciation, and amortization guidance of £119.1 million ($148.7 million).
Reduced Capital Expenditure Forecast
THG has revised its capital expenditure forecast for 2024, stating that it will be £30 million less than previously guided. This adjustment comes after the successful completion of its three-year global infrastructure roll-out and increased operational efficiencies achieved. The company now expects its capital expenditure to be between £100 million and £110 million, as opposed to the previous estimate of £135 million.
Strong Market Position and Financial Stability
Despite the challenging market conditions, THG remains confident in its market position and financial stability. Chief Executive Matthew Moulding emphasized that the company’s strong balance sheet and well-diversified divisions position them for future market share growth.
