(Bloomberg) -- THG Plc warned that full-year profit missed analyst estimates and forecast sales will decelerate amid record commodity prices and continued uncertainty from the pandemic.
- The beleaguered shopping emporium said its adjusted earnings before interest, tax, depreciation and amortization margin is expected to have been 7.4% to 7.7% in 2021, lower that the market’s estimate of 7.9%. It also indicated revenue growth is slowing, forecasting an increase of 22% to 25% in 2022, compared to a near 38% uplift last year.
- THG said while the early part of 2022 is expected to be more challenging it expects its profit margins to improve throughout the year as investments in automation start to pay off.
- Formerly known as The Hut Group, the company sells beauty, skincare and health food products across hundreds of websites. Ingenuity helps brands sell their goods online, offering services from building websites to fraud detection.
- Ingenuity now has 187 live customer websites up from 163 in the third quarter. The company has set a target of 400 live websites by the end of 2022. The group reiterated that Ingenuity will generate revenue of 108 million pounds to 112 million pounds this year.
- THG, co-founded by Matthew Moulding, has been dogged with controversy amid concerns about corporate governance and Ingenuity’s future growth. The company blames short sellers for the falling confidence in its operating model and future.
- Shares in THG have dropped 76% in the past year.
- Read the statement here.
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