THG’s share price plunged by a third in the hours following its Capital Markets Day yesterday, as the attempt to calm investors’ concerns about the business appeared to fall on deaf ears.
Around £1.8bn was wiped off of the online beauty company’s market value yesterday following the retailer’s capital markets day, where the group shared its 2030 sustainability strategy with investors.
THG’s share price, which had already fallen significantly in the week leading up to its capital markets day, tumbled 35% from Monday’s closing price of 437p, to close at 285p on Tuesday – equating to a fall in market value from £5.33bn to £3.48bn.
The Manchester-based business, which owns a range of specialist online beauty and nutrition brands including LookFantastic and MyProtein, is planning to expand its Ingenuity division, which sells ecommerce solutions to third-party brands including Unilever and Coca-Cola.
The company, which was the biggest London IPO in five years when it floated last September, has registered a fall in its share price since it unveiled plans to launch a separate listing for its beauty division last month.
Investors are also understood to have concerns about the complex deal that THG has struck with Japanese investment titan Softbank across its Ingenuity tech division, and were expecting to hear more evidence of its success and future plans at yesterday’s capital markets day.
THG said that “no material new information was disclosed” at the capital market day yesterday and that it “knows of no notifiable reason for the material share price movement”.
The etail group will next speak to investors for its third-quarter trading update on October 26.
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