Manchester e-commerce giant The Hut Group has said revenue this year will be higher than expected – and expects Black Friday will boost its sales.
The Hut Group, in its first quarterly update since its IPO in September, today raised its revenue guidance for the 2020 full year to between £1.48bn and £1.52bn.
This is up from its previous guidance at its IPO of £1.43bn.
The Hut Group said the fourth quarter remains “a key and important trading period each year, typically accounting for c. 30 per cent to c. 32 per cent of Group revenue each year, with Black Friday playing a key role”.
In the third quarter, the group’s reported revenues increased 38.6 per cent year-on-year to £378.1m.
The group said its highlights include direct-to-consumer online revenues, which increased 51.3 per cent year-on-year to £320.2m, compared to 47.8 per cent growth reported half-year 2020.
Its newly-launched Ingenuity division saw its high margin Ingenuity Commerce revenues grow 171.4 per cent year-on-year during the third quarter to £5.1m. Overall, the tech services arm grew at 10.1 per cent during the third quarter when including broader Ingenuity services, including beauty manufacturing and product development for third parties, it said.
Matthew Moulding, group chief executive and chairman, said: “Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period.
“Our decision to list on the London Stock Exchange provides us with a strong platform to raise the profile of both Ingenuity and our Brands, and further supports their strong organic growth.”
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He said: “Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.
“THG has a very strong balance sheet, enabling us to further invest across each of our growth pillars.
“THG’s core competencies leave it exceptionally well placed and we are witnessing increased opportunities, in scale and volume, for selective acquisitions across all our divisions and geographies.”
Mr Moulding also announced it will create a new advisory panel to provide additional support for the group’s board and sub-committees, for which three appointments will be made.