Shares in Manchester ecommerce giant THG were up on Tuesday morning after the firm delivered its best first-quarter revenue growth since the pandemic, with sales rising 7.0% on a continuing, constant-currency basis to £393.1m, as both Beauty and Nutrition gained momentum.
THG shares rose around 8% as the market pored over a trading statement revealing growth across the board.
Beauty revenue grew 5.8%, accelerating on the 5.4% delivered in the second half of last year, driven by a strong performance in the US and 7% order growth in the core UK market.
THG success story Lookfantastic continued to outperform the UK prestige beauty sector, adding active customers and gaining share. In the US, Dermstore grew revenue and expanded market share on the back of a 10% increase in new customers and a new checkout partnership with Flex, allowing shoppers to pay with pre-tax health savings accounts. K-Beauty was a standout, with revenue more than doubling year-on-year.
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Nutrition grew 8.8%, or 12.1% excluding Asia, where a deliberate shift to licensing with local manufacturing partners has created a near-term drag as the business rebuilds on higher-margin foundations.
The division is leaning heavily into categories beyond core protein powders, such as activewear, creatine, hydration and collagen, in an attempt to counter record whey prices.
Activewear now has an annualised run rate approaching £100m, with around 15% of active customers buying into the range in Q1 and those orders carrying average order values roughly 31% higher than the norm.
Myprotein’s retail footprint is expanding rapidly. The brand hit record UK market share in sports nutrition and has a string of launches lined up for Q2 and Q3, including branded bays in Tesco stores nationwide, entry into 1,200 Kroger locations in the US, and expanded listings with GNC and Vitamin Shoppe.
The group also delivered its strongest Q1 cash flow performance in three years and has reiterated full‑year guidance for FY 2026.
CEO Matthew Moulding said the better-than-expected start gives THG a stronger base heading into the rest of the year, even as the geopolitical backdrop remains uncertain: “It is energising for everyone at THG to see such a strong start to 2026, building on the better-than-expected momentum we delivered in H2 2025,” he said.
“In Beauty, Lookfantastic is once again outperforming the market following two years of business model change, while the US continues to perform strongly. In Nutrition, our diversification into margin-accretive categories is really paying off. Activewear continues to deliver exceptional growth, with annualised run-rate sales now fast approaching our £100 million ambition. Growth across activewear and other high-margin categories, including creatine, hydration and collagen, is helping to offset record whey commodity pricing.
“While the geopolitical backdrop remains uncertain, we enter Q2 with confidence after a better-than-expected Q1, giving us a stronger base against any unforeseen risks later in the year.”
