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Strong Pandemic Sale Prompted UK’s Hut Group To Upgrade Profit Forecast For 2021


01/13/2021


Strong Pandemic Sale Prompted UK’s Hut Group To Upgrade Profit Forecast For 2021
Profit forecasts by the online retail company that was recently went public, The Hut Group, which is owned and run by the Matthew Moulding, have been raised after the company experienced strong demand and sales for its beauty and sports nutrition brands during the novel coronavirus pandemic era.
 
There was a 51 per cent growth in the sale of the company during its fourth quarter which comfortably beat previous expectations of a growth of between 40 and 45 per cent, said the Manchester-based company which was listed on the London Stock Exchange in September this year.
 
Online sale sites of  Lookfantastic, Glossybox and Zavvi as well as beauty brands such as Espa and Illamasqua and the sports nutrition company Myprotein are owned and run by The Hut Group (THG). The company said that is overall sale revenues benefitted from strong demand and sales in the company’s beauty products, vitamin tablets, Myvegan supplements and hand sanitisers from customers during the Covid-19 pandemic period as people were forced to remain indoors.
 
Based on this strong demand, the company now predicts that its total revenues for 2021 will be between 30 per cent and 35 per cent higher compared to the company’s prediction last year of a growth of between 20 and 25 per cent. 
 
The “key standout was the beauty division”, said Matthew Moulding, the co-founder who serves as executive chairman and chief executive, to analysts and investors. The surge in demand also prompted the company to hire 3,000 more people mostly for its business operations in the United Kingdom which pushed the total number of employees of the company globally to about 10,000. The company also opened five warehouses in various parts of the world.
 
Moulding said that there was strong demand during its Black Friday sale – a day when the firm’s websites generally experience a 20 fold increase in orders in the single day.
 
The debut of the company at the stock market in middle of September was strong with its shares rising by a quarter. Moulding was given one of the largest pay outs in the corporate history of the UK – that of an £830m share reward, after the huge success of the company’s stocks on debut at the stock market. 
 
The United States based beauty website Dermstore was acquired by THG last month while the company also established partnerships with GlaxoSmithKline for its vitamins portfolio in the UK as well as with AkzoNobel for the launch of a website for its Dulux Heritage paint brand as a concession within Homebase.
 
Former Phones4u executives Moulding and John Gallemore has first set up The Hut Group in 2004 with the purpose of selling CDs online. The company soon quickly expanded using a tax loophole, which is now closed, that gave companies to not pay VAT for sale of small goods such as CDs and DVDs by posting those items from the Channel Islands for sale in the UK.
 
(Source:www.theguardian.com)