Core Insights - THG plans to expand its store footprint cautiously, with a focus on partnerships for capital expenditures rather than solely funding openings [1] - The Lookfantastic physical store in Altrincham has performed exceptionally well, exceeding initial expectations and positively impacting online sales [2] - THG Beauty reported a 6.4% revenue growth in Q4, driven by strong performance in the UK and Ireland, marking the company's first full-year growth since 2021 [5] Store Expansion and Performance - Management indicated that a new store in Bristol is planned but has faced delays due to fit-out issues [1] - The Lookfantastic store has generated a "halo effect" for online sales, performing better than anticipated [2] Financial Performance - THG reported a group revenue growth of 7% in Q4, with a successful Cyber trading period contributing to an 8% revenue increase in November and December [6] - The company ended 2025 with significant momentum, achieving a record second half that was 14% above the top end of guidance [7] Segment Performance - THG Nutrition experienced an 8.5% revenue growth in Q4, with Myprotein maintaining its position as the leading sports nutrition brand [8] - Excluding Asia, Nutrition growth would have been 12.2%, highlighting the impact of foreign exchange headwinds [9] Commodity Costs and Profitability - Elevated whey prices have pressured profitability, with an estimated GBP 65 million of annual profitability affected since the IPO [10] - Management expects commodity prices to normalize over time, while strong global demand for protein presents a market opportunity [10] Marketing and Cash Flow - Increased marketing investment of approximately GBP 3 million in Q4 was aimed at capitalizing on improved customer dynamics [12] - Management expects to generate GBP 20 million to GBP 25 million of free cash flow in 2026 based on current EBITDA expectations [14] VAT Dispute and Future Priorities - THG is involved in a VAT dispute with HMRC, with potential repayments increasing from GBP 30 million to GBP 55 million [16] - For 2026, THG aims to enhance digital leadership in Beauty and continue global offline expansion in Nutrition [17]

Core Insights - UK-based retailer THG reported a 6.3% rise in Q3 2025 revenue, marking its strongest organic sales growth since Q4 2021, driven by double-digit growth in nutrition and steady progress in beauty [1] - The overall growth was impacted by business disposals, reducing year-to-October and Q3 revenue by 340 bps and 270 bps respectively, with specific sales in beauty and nutrition also affected [2] - Revenue guidance for H2 2025 remains unchanged, with expectations for THG Beauty growth between 1% and 3%, THG Nutrition between 10% and 12%, and overall group performance between 3.9% and 5.9% [3] THG Beauty Performance - THG Beauty anticipates record Advent sales in 2025, supported by strong UK retail demand and double-digit revenue growth from Lookfantastic [4] - The US market showed improvement, particularly in luxury skincare and device categories, with subscription revenue rising 22% year-on-year [4] - The focus on commercial discipline and elevating brand proposition has driven a return to revenue growth in THG Beauty [6] THG Nutrition Performance - The nutrition division achieved a 10% year-on-year revenue gain, its highest growth in over two years, driven by both online and offline sales [1][4] - Myprotein expanded its US presence through 2,500 CVS stores and increased its reach in the Middle East via Spinneys Supermarkets [5] - The company is on track to expand Myprotein's direct-to-consumer market share and accelerate its global offline presence through retail and brand partnerships [6]

Core Insights - THG has reported a significant improvement in trading momentum, with organic growth reaching its highest rate since COVID, and overall revenue growth of 6.3% in Q3 2025 [1] THG Beauty - THG Beauty has returned to growth, driven by a successful advent calendar launch and strong performance in U.K. retail, including double-digit revenue growth for Lookfantastic [2] - The U.S. market showed improved performance with increased customer loyalty through subscriptions and growth in categories outside of core prestige skincare [2] THG Nutrition - Myprotein, a segment of THG Nutrition, achieved a revenue growth of 10%, with positive results in both online and offline channels [2] - Social commerce and marketplace channels are performing particularly well, with exclusive product launches on platforms like TikTok, including the new Myprotein and Jimmy's Iced Coffee Impact whey protein [2][3]