THG closed 2025 with its strongest quarter, leveraging its subscriptions-led model to build loyalty and deliver growth despite a challenging retail environment that saw revenue decline by -2.5% in H1. Group revenue rose +7.0% in Q4, up from +6.3% in Q3, supported by a strong Golden Quarter. This performance helped THG return to full-year growth for the first time since 2021, with FY revenue up +2.3%.
Peel Hunt analysts noted that Q4 trading beat expectations, with momentum continuing into 2026. “Both businesses performed well over peak,” the broker said, reiterating its Buy recommendation and 80p target price.
Beauty outperforms market
THG Beauty delivered its strongest Q4 growth since 2021, well ahead of guidance, driven by Lookfantastic’s +16.2% surge in the UK and Ireland. Cosmetics and skincare led, gaining UK market share and benefiting from record advent calendar sales. Valued at £655 but retailing at £105, and featuring 28 products from cult brands including Sol de Janiero and Medik8, the much-anticipated calendars “flew off the shelves.” Social media influence and strategic partnerships also played a key role in THG Beauty’s growth, with It-girl and influencer Molly-Mae Hague acting as brand ambassador and helping amplify Lookfantastic’s reach among younger consumers.
Innovation in convenience also helped win new customers and build loyalty. A new Lookfantastic partnership with Uber Eats offers same-day delivery for London customers, making the journey from product discovery to purchase shorter and more efficient.
Nutrition delivers consistent growth
THG Nutrition posted its fourth consecutive quarter of growth, up +12.2% excluding Asia, driven by Myprotein’s strength across multiple channels and product lines. Global collaborations, including a tie-up with confectionery giant Mars, broadened appeal. Activewear sales surged, with women’s leggings alone exceeding half a million units in FY 2025, lifting activewear to about 12% of online sales versus about 8% last year.
Subscriptions as a loyalty engine
THG’s subscription model continues to set it apart from competitors, fostering loyalty and predictable revenue streams. Beauty boxes and Myprotein subscriptions lock in repeat purchases and enable personalised experiences through AI and virtual tools. CEO Matthew Moulding says these areas will remain a priority.
“We finished 2025 on a high with our best quarter of the year thanks to a strong November and December period,” he said. “Our strategy to focus on core categories and territories is delivering clear results, and we enter the new year with strong trading momentum.”
With Q4 as the strongest quarter of FY 2025 and momentum carrying into January, THG appears well-positioned for 2026. Peel Hunt sees “clear drivers for the year ahead,” citing continued subscription growth, digital innovation, and brand partnerships as key levers.
After experiencing volatility in recent years, THG’s return to growth, powered by loyalty-driven subscriptions and influencer marketing, signals a confident step forward.
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