THG hits back over beauty supplier claim
THG has hit back after a newspaper claimed on Monday that some beauty suppliers were unhappy about its high level of discounts. The company said in a stock exchange announcement that it had noted the fall in its share price yesterday “and confirms that it knows of no notifiable reason” for this.
It said that in response to recent media speculation regarding the restriction of supplies to THG Beauty, it can also confirm that it knows of no issues.
THG said Dermalogica — which was named in the newspaper report — “has not placed and is not looking to place any restrictions on its trading relationship with THG Beauty, including with regard to the supply of stock”.
It also added that the relationship between Dermalogica and THG Beauty was a long one and remains very positive, although the overall revenues generated by it were only around 0.1% of FY 2021 sales.
And it’s “not aware of any other key supplier to THG Beauty who has or who intends to reduce supply or take any similar steps”.
The company entered the beauty sector in 2010 and added over 200 new beauty brands to its retail destination sites, on a net basis, last year. It saw prestige beauty sales of £1.1 billion.
The company’s share price recovered slightly in early trading on Tuesday but the less-than-3% rise failed to recover most of the losses made on Monday when the slide reached double-digits.
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