Matt Moulding’s THG faces ugly row over beauty discounting

Matt Moulding’s THG faces ugly row over beauty discounting

Beauty suppliers to THG are limiting the stream of inventory to Matthew Moulding’s on-line retail empire over issues it’s too aggressively discounting to hit gross sales targets, The Telegraph can reveal.   
Dermologica, an upmarket skincare model owned by Unilever, is among the many large names which have taken motion to guard their pricing by lowering provides to THG. 
The client items big is a rising pressure in luxurious beauty merchandise and it’s understood issues over THG have grown in latest months throughout elements of the trade. 
Unilever declined to remark.
An trade supply at one other provider stated: “They’re not the one ones. Working with THG isn’t simple due to the excessive revenue margins they want, however once they tear down your model too it’s not value it.”  
The row has emerged as Mr Moulding prepares for a personal fairness bidders to grab on THG’s bombed-out share worth. Bankers from Barclays and Jefferies are advising THG on a possible bid defence.   
THG owns a string of in style beauty web sites together with Lookfantastic, Dermstore and Cultbeauty, which have grown quickly with funding in digital advertising and social media promotion.   
The revolt led by Unilever indicators that the mounting strain THG and Mr Moulding have been underneath since going public in 2020 has now unfold to its provide chain.   
On Friday THG shares closed at an all-time low of 113.4p, valuing the corporate at £1.4bn. That compares with its float valuation of £5.4bn and a peak of greater than £8bn.   

https://www.telegraph.co.uk/business/2022/02/19/matt-mouldings-thg-faces-ugly-row-beauty-discounting/

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