Hut Group raises forecast amid ‘strong’ trading period 

The Hut Group has announced that group revenue soared by 38.6% to £378.1m in the three months ended 30 September 2020.

This represents an acceleration against the reported H1 2020 revenue growth rate of 35.8%. 

In the same period, direct-to-consumer online revenues surged by 51.3% to £320.2m year-on-year, compared to the 47.8% growth reported at H1 2020. 

In addition, the group’s Ingenuity Division saw its high margin Ingenuity Commerce revenues grow to £5.1m, up by 171.4% year-on-year in the third quarter.  

Overall, the Ingenuity Division, when including broader Ingenuity services, such as beauty manufacturing and product development for third parties, grew at 10.1% during the period.

New customer acquisitions also continued to be “very strong”, according to the retailer, while repeat purchase rates have continued to improve from both new and existing customers.

As at 30 September, the group maintains a “significant” positive net cash position of around £420m, with over £900m of liquidity available to it. 

Following the group’s “strong” third quarter performance and “continued momentum” into the fourth quarter, it is now raising its full-year 2020 revenue guidance to a range of around £1.48bn to £1.52bn, up by 30% to 33% against previous guidance, respectively. 

Matthew Moulding, group CEO and executive chairman, said: “I am pleased to report a strong period of trading in our first quarterly update as a public company, including an upgrade to revenue growth guidance for 2020. 

“Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period.” 

He added: “Our decision to list on the London Stock Exchange provides us with a strong platform to raise the profile of both Ingenuity and our Brands, and further supports their strong organic growth. Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.

“THG has a very strong balance sheet, enabling us to further invest across each of our growth pillars. THG’s core competencies leave it exceptionally well placed and we are witnessing increased opportunities, in scale and volume, for selective acquisitions across all our divisions and geographies.”