The Hut Group on Tuesday raised 2021 revenue forecast by 10 percent, underpinned by its acquisition of Dermstore.com and a surge in online demand for its beauty products amid coronavirus lockdowns in the UK.
The Hut Group had earlier predicted a 20 percent to 25 percent surge in its medium-term revenue before announcing last month that it would buy Dermstore, an online retailer owned by Target Corp, for $350 million to bolster the presence of its beauty brands in the US market.
The British retailer said it now expects 2021 revenue to be between 30 percent and 35 percent higher than 2020 revenue of about £1.61 billion.
E-commerce players have seen a surge in online sales due to restrictions imposed on the movement of people and the closure of malls and other leisure destinations during national lockdowns.
England imposed the third national lockdown last week.
The company, which helps sell retail brands, including Lookfantastic and skincare group ESPA, said fourth-quarter 2020 revenue jumped 51 percent to £558.7 million ($757.26 million), ahead of its expectations.
Last month, THG raised its 2020 revenue forecast for the second time in less than two months due to strong demand during Black Friday and Cyber Monday. The lockdown fetched the e-commerce retailer nearly 11 million customers in 2020.
The Hut Group made its London stock market debut in September, sealing a £5.4 billion listing and making it one of London’s largest tech IPOs to date and the biggest by market cap since Royal Mail in 2013.
“We have also started reinvesting capital raised at IPO, including over £360 million in M&A, principally within the US beauty sector,” said Chief Executive Officer Matthew Moulding.
By Yadarisa Shabong ; editors: Shailesh Kuber and Sherry Jacob-Phillips.