THG (GB:THG)
LSE:THG
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THG
(LSE:THG)
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Rating:50Neutral
Price Target:
39.00 p
▼(-0.36% Downside)
Action:ReiteratedDate:04/18/26
The score is held back primarily by mixed financial quality—negative operating profit and a deterioration to negative operating/free cash flow in 2025 despite improving net income—plus still-elevated leverage. Technicals are supportive with price above major moving averages, but momentum looks stretched (very high Stoch). Valuation is moderately attractive on P/E, and the latest earnings call signals meaningful strategic and balance-sheet progress, tempered by revenue decline and cost pressures.
Positive Factors
Balance-sheet strengthening
A GBP 374m gross debt reduction and facility extension to 2029 materially extend THG's liquidity runway and lower near-term refinancing risk. This durable improvement increases strategic flexibility to invest in growth, execute disposals, and withstand cyclical pressure without immediate capital raises.
Negative Factors
Weak cash generation
Operating and free cash flow turning negative in 2025 signals persistent cash conversion weakness. Over the medium term this constrains reinvestment, inventory funding and marketing, raising reliance on external financing and making operational improvements and growth investments harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strengthening
A GBP 374m gross debt reduction and facility extension to 2029 materially extend THG's liquidity runway and lower near-term refinancing risk. This durable improvement increases strategic flexibility to invest in growth, execute disposals, and withstand cyclical pressure without immediate capital raises.
Read all positive factors
THG (THG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£655.51M
Dividend YieldN/A
Average Volume (3M)6.85M
Price to Earnings (P/E)11.7
Beta (1Y)1.18
Revenue Growth-20.36%
EPS Growth44.33%
CountryUK
Employees6,797
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.02
Shares Outstanding1,640,392,700
10 Day Avg. Volume6,451,997
30 Day Avg. Volume6,852,398
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.49
Price to Sales (P/S)0.37
P/FCF Ratio-45.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£60.00Price Target Upside53.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£1.79B
THG Business Overview & Revenue Model
Company Description
THG Plc operates as an e-commerce technology company in the United Kingdom, the United States, Europe, and internationally. The company operates pure-play sites, such as Lookfantastic, Cult Beauty, and Dermstore that offers approximately 1,300 pre...
How the Company Makes Money
THG makes money primarily through (1) direct-to-consumer product sales and (2) providing e-commerce technology and related services.
1) Direct-to-consumer (DTC) retail revenue (Beauty and Nutrition): THG generates revenue by selling products dir...
THG Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong strategic focus with several positive developments such as growth in THG Nutrition, strengthening of the balance sheet, and successful disposals. However, challenges remain with group revenue decline and high input costs in Nutrition. The overall sentiment is balanced, with significant strategic achievements offset by some ongoing challenges.Positive Updates
THG Nutrition Division Growth
THG Nutrition delivered 3% revenue growth, driven by new customer acquisition and expansion of offline retail in Europe, the U.S., and Asia.
Negative Updates
Group Revenue Decline
Group revenue was GBP 783 million, down 2.6% from the prior year, largely due to strategic actions within THG Beauty.
Read all updates
Q2-2025 Updates
Positive
Negative
THG Nutrition Division Growth
THG Nutrition delivered 3% revenue growth, driven by new customer acquisition and expansion of offline retail in Europe, the U.S., and Asia.
Read all positive updates
Company Guidance
In the call, THG outlined key metrics and strategic moves that have shaped its financial performance in the first half of the fiscal year 2025. The group reported a revenue of GBP 783 million, down 2.6% from the previous year, largely due to strategic shifts within THG Beauty, including the planned discontinuation of some operations. Despite this, THG Nutrition experienced a 3% revenue growth, supported by the Myprotein global rebrand and the expansion into offline retail channels. The adjusted EBITDA for H1 stood at GBP 24 million, with an EBITDA margin of approximately 3.1%, though high input costs in Nutrition impacted margins. Additionally, THG improved its financial position by reducing gross debt by GBP 374 million and extending facilities to December 2029, further strengthened by the disposal of Claremont Ingredients for over GBP 100 million. Looking ahead, THG remains confident in its full-year guidance, bolstered by positive growth in both Beauty and Nutrition divisions and strategic actions aimed at enhancing market share and customer loyalty. The company is also exploring growth opportunities in retail media and licensing to expand its brand presence globally.THG Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
43
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.72B | 1.75B | 2.05B | 2.24B | 2.18B |
| Gross Profit | 630.76M | 693.60M | 840.29M | 771.00M | 855.37M |
| EBITDA | 54.87M | -48.64M | 42.42M | -289.44M | 32.07M |
| Net Income | 54.13M | -326.14M | -248.37M | -539.96M | -138.07M |
Balance Sheet | |||||
| Total Assets | 1.60B | 2.55B | 2.78B | 3.09B | 3.42B |
| Cash, Cash Equivalents and Short-Term Investments | 183.10M | 309.35M | 416.16M | 473.78M | 536.83M |
| Total Debt | 561.17M | 645.94M | 995.01M | 1.01B | 839.04M |
| Total Liabilities | 1.17B | 2.24B | 1.76B | 1.79B | 1.67B |
| Stockholders Equity | 425.22M | 305.83M | 1.02B | 1.30B | 1.76B |
Cash Flow | |||||
| Free Cash Flow | -14.09M | 28.99M | 16.15M | -164.27M | -190.88M |
| Operating Cash Flow | -10.06M | 96.46M | 141.81M | 12.15M | -1.71M |
| Investing Cash Flow | 33.52M | -92.11M | -77.14M | -182.11M | -959.06M |
| Financing Cash Flow | -148.98M | -22.91M | -122.29M | 106.92M | 724.01M |
THG Technical Analysis
Positive
39.14
Price Trends
32.88
Positive
38.22
Positive
37.20
Positive
Market Momentum
1.06
Negative
71.61
Negative
99.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:THG, the sentiment is Positive. The current price of 39.14 is above the 20-day moving average (MA) of 31.49, above the 50-day MA of 32.88, and above the 200-day MA of 37.20, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 71.61 is Negative, neither overbought nor oversold. The STOCH value of 99.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:THG.
THG Risk Analysis
THG disclosed 12 risk factors in its most recent earnings report. THG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
THG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £2.85B | 2.38 | 21.64% | ― | -6.43% | 52.93% | |
73 Outperform | £1.38B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
71 Outperform | £3.68B | 26.72 | 17.89% | 1.21% | 14.60% | 58.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | £262.77M | -1.12 | -111.93% | ― | -14.89% | 12.08% | |
50 Neutral | £655.51M | 11.73 | 12.75% | ― | -20.36% | 44.33% | |
41 Neutral | £256.66M | -3.32 | -9999.00% | ― | -65.42% | 27.73% |
* Consumer Cyclical Sector Average
GB:THG
THG
39.14
11.28
40.49%
GB:ASC
ASOS plc
227.50
-86.00
-27.43%
GB:FRAS
Frasers Group
690.00
69.50
11.20%
GB:DEBS
boohoo group Plc
17.50
-1.92
-9.89%
GB:CURY
Currys plc
131.70
34.02
34.82%
GB:JD
JD Sports Fashion
77.26
3.14
4.23%
THG Corporate Events
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
THG Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Apr 8, 2026
THG PLC has published its Annual Report Accounts for the financial year ended 31 December 2025, making the document available on its website and through the U.K. Financial Conduct Authority’s National Storage Mechanism. The annual report wi...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
THG returns to growth as demerger and refinancing cut debt and lift profit
Positive
Mar 26, 2026
THG reported preliminary 2025 results showing a return to growth in constant currency, with group revenue up 2.3% and a record second half performance driven by accelerating momentum in both Beauty and Nutrition. Adjusted EBITDA of £76.6m cam...
Business Operations and StrategyFinancial Disclosures
THG to Publish 2025 Full-Year Results and Host Investor Call
Neutral
Mar 25, 2026
THG PLC has announced that it will publish its full-year results for the period ended 31 December 2025 on 26 March 2026, giving investors and analysts a detailed view of its financial and operational performance over the past year. The timing of t...
Business Operations and StrategyProduct-Related Announcements
THG’s Myprotein Strikes Greencore Deal to Boost Protein Food-to-Go Presence
Positive
Feb 12, 2026
Myprotein, the flagship sports nutrition brand of THG Nutrition, has entered a strategic licensing partnership with convenience food producer Greencore to launch a range of protein-enriched salads and wraps for Sainsbury’s stores. The deal a...
Delistings and Listing ChangesRegulatory Filings and Compliance
THG Seeks London Listing for 40.6m New Shares Under Incentive Plan
Neutral
Jan 22, 2026
THG PLC has applied to the London Stock Exchange for 40,611,605 new ordinary voting shares of £0.005 each to be admitted to trading, with admission expected on 23 January 2026. The new shares, issued under the company’s 2022 Long Term I...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.