UK's THG reports lower first-quarter revenue; issues tariff warning

(Reuters) -British e-commerce firm THG reported a drop in first-quarter revenue on Tuesday and warned that U.S. tariffs will indirectly affect its performance in the second half of the year.

While the impact is expected to be less than 1 million pounds ($1.34 million) before any mitigating actions, it is compounded by the higher operating expenses from higher national insurance and minimum wages in Britain, the company said.

WHY IT MATTERS

THG, which recently spun off its technology services arm Ingenuity, has been grappling with rising raw material prices amid a cost-of-living crisis in Britain and has issued several profit warnings over the last few months.

It had also rejected a bid for its profitable sports nutrition brand Myprotein in April, which it is heavily dependent on along with its beauty business.

CONTEXT

Companies around the world are weighing the effects of a global trade war triggered by U.S. President Donald Trump's tariffs, which have also raised fears about a recession.

THG, which owns brands including Lookfantastic, Cult Beauty, and Exante, functions in several key markets including the U.S., UK, Middle East and North Africa.

BY THE NUMBERS

For the first quarter of 2025, THG reported continuing revenue of 371.4 million pounds, down 6.1% in constant currency terms.

The firm maintained its revenue growth expectations of mid-single digit percentage growth for 2025.

MARKET REACTION

THG shares fell as much as 6.2% to 26.52 pence. They have lost about 37% of their value so far this year.

($1 = 0.7452 pounds)

(Reporting by Raechel Thankam Job and Yamini Kalia in Bengaluru; Editing by Varun H K)