In response to recent claims made in a newspaper article, The Hut Group (THG) has issued a statement addressing dissatisfaction among beauty suppliers regarding the company’s high level of discounts. The statement, released on the stock exchange, acknowledged the recent decline in THG’s share price and stated that the company is unaware of any specific reason for this decline.

One brand mentioned in the newspaper report was Dermalogica, and THG has confirmed that it has not imposed any restrictions on its trading relationship with THG Beauty and has no plans to do so. Despite the relatively low contribution of approximately 0.1% of THG’s total sales in FY 2021, the company emphasized its positive and longstanding relationship with Dermalogica.

THG further clarified that it has not received any information about other key suppliers reducing supply or taking similar actions. Since entering the beauty sector in 2010, THG has successfully added over 200 new beauty brands to its retail sites, resulting in impressive prestige beauty sales of £1.1 billion.

Although there was a slight recovery in THG’s share price during early trading on Tuesday, the less-than-3% increase was insufficient to fully offset the losses incurred on Monday, which were in the double digits.

The Hut Group’s response reflects its commitment to addressing concerns and reassuring both investors and beauty suppliers about the stability and positive relationships within its beauty sector. As an influential player in the e-commerce and beauty industry, THG continues to expand its portfolio of brands and solidify its position as a leading destination for beauty products.

For more information on THG and its beauty sector, you can visit their official website [link] and explore their extensive range of beauty brands [link].