British e-commerce retailer THG has observed a return to group revenue growth in the second quarter of 2025, with a notable improvement in sales within its beauty and nutrition segments.

The announcement was made in an update on the company’s financial performance before its upcoming Annual General Meeting (AGM).

The group stated that this positive trend, particularly marked by robust revenue generation in June, allows it to maintain its financial projections for the fiscal year 2025 consistent with previous forecasts.

In the beauty segment, revenue decline is expected to be between 2% and 3%, a significant recovery from the 9.8% drop in the first quarter (Q1).

Within that segment, retail operations, which form the bulk of the business, demonstrated robust performance.

Notably, the UK market, which is their largest territory, saw its highest growth rate since the first quarter of 2024.

The company's strategic move to exit less profitable markets in Asia and Europe will complete its annual cycle in the third quarter, effectively eliminating any negative impact on year-on-year revenue comparisons from that point forward.

Revenue from THG's own beauty brands did not meet expectations for the quarter due to the timing of significant customer orders. However, the company expects to reverse this in the second half.

THG nutrition has continued to show positive momentum, with new customer growth leading to solid online performance.

Q2 2025 is expected to see revenue growth of between 5% and 7%, marking the fastest growth rate since Q1 2022.

THG stated: “Whilst our direct exposure to tariffs is expected to be less than £1m pre mitigating actions, we continue to monitor the changes to US trade policy and reciprocal actions for an adverse impact on raw material supply chains and US consumer sentiment.”

In early June 2025, THG Fulfil partnered robotics provider Libiao to install 430 T-sorting robots into its Manchester warehouse facility.