THG shares tank on weaker revenue, wider losses
Shares in UK online retail platform THG tanked on Thursday as the company's first half pre-tax losses widened and revenues slipped.
However, THG maintained annual guidance as it reported a rise in adjusted core earnings and said sales trends were "gradually improving" into its second half.
Pre-tax losses widened to £108m to £133m in the six months to June 30. Adjusted core earnings of rose 45% to £47.1m, in line with forecasts. Revenue fell 9.3% to £969.3m.
"Inflationary pressures provided significant challenges to consumers and businesses alike over the past 18 months. Our strategy of supporting our consumers through 2022, sacrificing margins in the short-term, is bearing fruit," said chief executive Matthew Moulding.
THG expects its annual revenue from continuing operations to be flat or fall up to 5%. Third-quarter continuing revenue was anticipated to be marginally ahead of Q2, with a notable step-on in THG Beauty and THG Ingenuity.
Reporting by Frank Prenesti for Sharecast.com