Looking at the performance of ( ) since its stock market debut nearly four years ago makes me glad I decided not to buy into the much-hyped listing back then. The shares have lost over 90% of their value during that time. The past year alone has seen a 32% fall in the THG share price.
But there is a lot to like about the company, in my opinion. So could the THG share price be a sleeper worth me acting on today with a ? Lots to like Let me start by explaining what I see as the positive elements of the THG investment case. This is a business with sizeable revenues.
In the first quarter of this year, for example, the company turned over more than £450m. It has a sizeable customer base, with the beauty division’s loyalty programme having over 2m members. THG owns what it describes as the fastest-growing sports nutrition brand across UK retailers: .
The nutrition business is growing fast, with international expansion in potentially huge markets such as India. The company’s Ingenuity ecommerce platform is growing, with first quarter revenues up 4% year-on-year. Strategic questions However, a share does not lose over 90% of its value for no reason.
Partly, I think the decline reflects an over ambitious listing price. But I also see grounds for investor concern when it comes to the underlying business. THG is a difficult business to understand.
It is a ragtag of online retail businesses mixed with a B2B digital commerce offering. That could make sense in the long term but, so fa.