Stock

: On-line demand for magnificence merchandise spikes through the pandemic as retailer The Hut Group once more raises gross sales prospects

Hut Group's shares rose nearly 2% on Tuesday after the e-commerce retailer raised its sales forecast for the third time since it went public in September 2020, fueled by soaring demand for its beauty products during the COVID-19 pandemic .

FTSE 250 listed GHG
GHG,
+ 1.92%,
Sales in the three months to December 31, 2020 increased by 51% and were thus 51% above the previous value of 40% to 45%. given on December 7th.

Growth was particularly strong in the online beauty business, where sales for the quarter rose 66% to £ 298 million while food sales rose 39.6% to £ 158 million.

THG, whose Ingenuity e-commerce technology platform serves blue-chip customers such as Nestlé
NESN,
-0.56%,
Walgreens Boots Alliance
WBA,
+ 5.51%
and Procter & Gamble
PG,
-0.68%,
There were 3.5 million new active customers in the fourth quarter, for a total of 10.7 million for the entire year.

Read: The demand for plastic surgery is increasing amid the ongoing COVID-19 pandemic

"Following our successful listing on the London Stock Exchange in September 2020, we have accelerated our revenue growth across all areas of the group, supported by record new customers," said Matthew Molding, Chief Executive of THG. "We have also begun reinvestment of capital raised on the IPO, including over £ 360 million in mergers and acquisitions [mergers and acquisitions], mainly in the US beauty sector."

In December, THG closed three deals, including the $ 350 million acquisition of US online beauty retailer Dermstore.com, which the company bought from retail chain Target. The deal means 20% of THG's sales will now come from the US, compared to 13% before the acquisition.

Since going public on the London Stock Exchange in September, THG shares have risen nearly 60%, giving the company a market valuation of £ 7.8 billion. The stock rose more than 2% on Tuesday morning in London.

The new forecast from THG came as a games workshop
GAW,
-7.22%,
The Warhammer figurine maker reported "Record Sales, Profit Levels and Cash" as it benefited from COVID-19 bans and restrictions on staying at home with its customers.

In the six months until November 29, 2020, Games Workshop
GMWKF,
+ 0.16%
reported a pre-tax profit of £ 91.6m compared to £ 58.6m last year. Revenue rose from £ 148.4 million to £ 186.8 million in the reporting period. In a December update, the company had profits of no less than £ 90million and sales of around £ 185million.

“Another great achievement by a really amazing global team. A solid half year that builds on the great progress and profitable growth that we have consistently achieved over the past five years, ”said CEO Kevin Rountree in a statement.

Video games have grown in popularity over the past year as people spent more time at home, benefiting companies like Games Workshop, which now have a market valuation of nearly £ 4 billion. Games Workshop shares fell 3.4% in early London trade on Tuesday.

Read: Thanks to the pandemic, video games are a bigger industry than movies and North American sports combined

The Games Workshop, listed on the FTSE 250, attributed the record performance to a "gradual change" of its Warhammer 40,000 characters around the world, adding that performance was "particularly good" in North America, where investment has increased.

"Stocks have certainly seen decent gains since mid-summer and closed yesterday. So today's declines could just be a case of lock-in," said Michael Hewson, chief market analyst at CMC Markets.

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