Fashion
THG reports weaker numbers in first half but sees Q3 uptick
Published
September 11, 2025
THG’s first-half results on Thursday were in line with its guidance as the company returned to revenue growth in Q2 and saw a positive start to the second half. Not that the figures for the first six months of the year looked particularly impressive, but the company seems to be upbeat as business is moving in the right direction.
It said that “trading momentum from Q2 into Q3 continues to build positively, with the strategic model changes implemented across both THG Beauty and THG Nutrition throughout 2024 now bearing results. This momentum underpins confidence in full year and medium-term outlook”.
And it added that the successful THG Ingenuity demerger at the start of H1 alongside the Q3 disposal of Claremont Ingredients for £103 million, puts it on an “accelerated path towards a net cash position, with the H1 2025 refinancing securing long-term committed facilities”.
So let’s look at the H1 numbers and the H2 outlook with a particular focus on its Beauty ops.
THG revenue was £783.4 million, which was down 2.6% on a constant currency basis. The gross margin dipped to 41.1% from 42.6%, reflecting price impacts in its Nutrition business but is expected to return to growth for the second half.
Adjusted EBITDA fell to £24 million from £37.1 million a year ago in line with the trading update it issued last month. The result was weighted towards Q2 with Q3 expected to be “meaningfully higher”. That comes as the company said it’s seeing its strongest trading performance of the year so far in the third quarter.
Revenue at THG Beauty dropped 5.9% in the first half on a constant currency basis and was down 12.4% on a reported basis at £479.9 million.
THG Beauty’s gross profit fell 14.8% to £190.4 million in the first half and adjusted EBITDA for the division was down 29.4% at £20.2 million, primarily reflecting the revenue and gross profit result. But this was partially offset by distribution cost efficiencies from increased UK participation. Lifecycle investment and B2B order phasing (across own-brands and manufacturing) also contributed to the change.
For H2, THG Beauty is expected to deliver revenue growth of 1%-3%.
Digging into the details of the Beauty performance, THG said that it saw “resilient retail trading with Q2 2025 UK growth at its highest rate since Q1 2024, supporting market share gains”.
The effect of withdrawing from certain sales activity in Europe and Asia, as well as various non-underlying items such as asset disposals including the luxury portfolio, contributed over 900bps of the revenue decline in H1, with these factors mainly annualising in Q3 2025.
But new brand launches drove growth and engagement, with over 70 launched year to date, including Gucci Beauty. Revenue from new brands is expected to be up 50% vs 2024 “with future personalisation developments supporting product discovery including integrating diagnostic technology and tailored product recommendations for specific looks and concerns”.
LookFantastic loyalty members continued to grow in H1, reaching 3.2 million members, “with consumer preference surging by 54% (Q1 to Q2). This reflects the ongoing strategy to develop and deploy learnings from an evolved marketing measurement framework, focused on incremental efforts, demand generation and brand tracking to drive greater brand awareness and a higher quality of recurring customer”.
CEO Matthew Moulding said: “I’m really pleased at how THG has gained momentum throughout the first half and into Q3. A slower start to the year in Beauty, alongside record whey prices in Nutrition, initially held back performance, but we saw clear improvement in Q2, in particular supported by Myprotein offline retail and licensing sales.
“As a business we’ve reaped the benefits of the recent extensive strategic initiatives across the group. Our Beauty business particularly in the UK demonstrated impressive resilience, securing market share gains in Q2, with a growing loyalty base and successful new brand launches supporting a return to revenue growth in Q3.”
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The updated CBAM introduces a new de minimis mass threshold, exempting imports of up to 50 tonnes per importer per year from CBAM requirements. This replaces the earlier rule exempting only goods of negligible value. According to the EU, this change will relieve 90 per cent of importers—primarily SMEs and individuals—of reporting and compliance obligations while still covering 99 per cent of total CO2 emissions from CBAM goods such as iron, steel, aluminium, cement, and fertilisers, the Parliament said in a press statement.
European Parliament has approved CBAM reforms under the ‘Omnibus I’ package, easing compliance for SMEs by exempting imports up to 50 tonnes per importer annually.
The changes simplify authorisation, emissions calculation, and verification rules while retaining 99 per cent emissions coverage for some products.
The text now awaits Council endorsement.
For goods still covered by CBAM, the law simplifies key processes including authorisation of CBAM declarants, calculation and verification of embedded emissions, and financial liability requirements. The legislation also introduces safeguards and anti-abuse provisions to ensure that emissions coverage remains intact and that the threshold cannot be misused to avoid compliance.
The legislation must now be formally endorsed by the Council of the EU. It will enter into force three days after its publication in the EU Official Journal.
CBAM is the EU’s flagship tool to ensure a level playing field between EU-made products—which are subject to the EU Emissions Trading System (ETS)—and imports from non-EU countries. It is designed to encourage foreign producers to adopt more climate-friendly production methods. In early 2026, the European Commission is set to review whether the CBAM’s scope should be expanded to cover additional ETS sectors and consider measures to assist EU exporters of CBAM-covered goods facing carbon leakage risks.
Fibre2Fashion News Desk (KD)
Woven garment exports slightly outpaced knitted garment exports in terms of growth. Knitwear exports (Chapter **) rose by *.** per cent to $*.*** billion, compared to $*.*** billion in the same period of fiscal ****–**. Woven apparel exports (Chapter **) increased by **.** per cent to $*.*** billion, up from $*.*** billion in July–August ****, EPB data showed.
Home textile exports (Chapter **, excluding ******) also grew, rising by **.** per cent to $***.** million, compared to $***.** million in the same period of the previous fiscal. Collectively, exports of woven and knitted apparel, clothing accessories, and home textiles accounted for **.** per cent of Bangladesh’s total exports, which stood at $*.*** billion during the period.
Translated by
Nazia BIBI KEENOO
Published
September 11, 2025
Italy is mourning the death of Francesco Trapani, the iconic luxury goods executive best known for transforming the Bulgari family business into a global leader in jewelry. He died on September 10 at his home in Rome following an illness. He was 68. Trapani was the great-grandson of Sotirio Bulgari, founder of the Roman jeweler Bulgari, and took over the reins of the company in 1984 at the age of just 27.
A graduate in business economics from the University of Naples, Trapani specialized in business administration at New York University before joining the family company in 1981 as assistant to the chief financial officer. Over the course of three decades, he transformed the historic Roman jeweler into a major player in the international luxury market, accelerating its diversification into watches, perfumes, and accessories, and launching its expansion into the upmarket hotel industry. In 1995, he took Bulgari public on the Milan Stock Exchange.
Under Trapani’s leadership, Bulgari grew from €25 million in revenue, five boutiques, and 80 employees in 1984 to €1.5 billion in sales, 300 stores, and 4,000 employees by 2011.
When the company was sold to LVMH in 2011, it was valued at €4.3 billion. Following the acquisition, Trapani led the integration of Bulgari into the French luxury group, overseeing LVMH’s watch and jewelry division until 2014. He continued to advise Bernard Arnault on jewelry strategy for several years, remaining on LVMH’s board of directors until 2016.
In early 2014, Trapani joined the Italian investment fund Clessidra as chairman. He left in 2017 to join the board of Tiffany & Co., resigning at the end of 2018 following the announcement of the American jeweler’s pending acquisition by LVMH.
He later entered a new chapter in finance, becoming active in several investment groups, including Bluebell Capital Partners, Tages Group, and VAM Investments.
Jean-Christophe Babin, CEO of Bulgari, paid tribute to Trapani in a public message, praising his visionary leadership and enduring influence on the jewelry house.
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