Following the release of subpar earnings and a profit warning, the share price of THG has dropped to new lows.
After releasing a poor set of first-half earnings this morning, THG shares are down more than 16per cent and at new all-time lows. After issuing a profit warning, revenue increased less quickly than projected, earnings decreased far more than predicted, and the company lowered its projection for the entire year.
Revenue increased 12.3 per cent in the first half of 2022 to reach a new record high of £1.08 billion, but this was much behind the 16.5 per cent topline growth analysts had predicted.
While this was happening, adjusted Ebitda, which analysts had projected to be £57.1 million, fell by roughly 60 per cent to £32.3 million.
The growth was put on hold as customers became warier and tightened their purse strings in an uncertain atmosphere, which led to poor results. All of its divisions experienced slower growth than anticipated, particularly its Ingenuity platform, which increased at half the rate analysts had predicted despite lower average recurring revenue as e-commerce demand slowed. While attempting to maintain low pricing and absorb cost increases in the face of escalating inflation, profitability has declined.