British e-commerce company THG (THG.L) has affirmed its annual revenue and earnings projections, which were recently revised downward.
The firm disclosed that it returned to revenue growth on a constant currency basis in September.
THG, the proprietor of online brands like Lookfantastic and Myprotein, declared that its revenue for the third quarter ending on September 30 decreased by 2.1% on a constant currency basis.
This represents a notable improvement of 480 basis points when compared to the preceding quarter. In a positive development, revenue surged by 3.2% in September when evaluated on the same constant currency basis.
Despite the challenging market conditions, THG has chosen to maintain its full-year revenue guidance, indicating an expected range from flat to a decrease of 5%.
Since its impressive $7 billion initial public offering in London in 2020, THG has faced adversity, issuing multiple profit warnings that have exerted substantial downward pressure on its stock.
This predicament has also attracted the interest of potential acquirers, but all takeover offers have been firmly declined by the company.
In the current year, THG’s stock has experienced a sharp decline, registering a decline of 52%.
This drop underscores the challenges faced by the company and the need for it to execute its strategic plans effectively in order to regain investor confidence and return to a growth trajectory.
In summary, THG is holding steadfast to its annual guidance despite recent setbacks, including declining revenue figures and a significant drop in its stock price.
The company’s performance in September, with a return to revenue growth, offers a glimmer of hope amidst the challenges it faces.
THG’s ability to successfully navigate these challenges and implement its strategies will be closely watched by investors and the market in the coming months.