THG Beauty H1 2026 Revenue Up 5.9%, Lookfantastic, K-Beauty Boost

THG Beauty Reports H1 2026 Revenue Growth

THG announced revenue growth for the first half of 2026. The company's group revenue reached £828.7 million, marking a 7.2% increase. Both its Beauty and Nutrition divisions demonstrated growth for the fourth consecutive quarter. THG Beauty revenue specifically rose 5.9% to £500.2 million for the six months ending June 30.

This beauty segment contributed approximately 60% of THG's total group revenue. The company's Beauty division states it continued to increase its market share, with retail revenue in the UK showing a 6.7% rise.

Lookfantastic, K-Beauty, and Social Commerce Drive Performance

Lookfantastic was a primary contributor to THG Beauty's growth. Skincare sales through the retailer increased 17.4% year-to-date. Lookfantastic expanded its premium brand offerings, adding over 50 new brands during the six-month period.

Social-led commerce also played a significant role in THG's overall growth, with Lookfantastic's revenue from TikTok Shop increasing 26% year-on-year. K-beauty represented another notable source of growth and customer acquisition. THG claims K-beauty helped acquire more than 64,000 new customers.

THG Beauty also saw loyalty membership increase by 9%, with about 90% of its beauty revenue coming from returning customers. Direct-to-consumer orders increased to 16.1 million from 15.4 million.

Margin Pressures and Q3 Outlook

Despite strong revenue figures, THG Beauty faced challenges. Gross margins decreased to 38.8%, which the company attributed primarily to the timing of manufacturing orders. THG also warned about new EU customs charges, introduced from July 1, expecting them to affect beauty sales in the short term.

The company forecasts group revenue growth of approximately 2% for the third quarter, with recovery projected for Q4. Matthew Moulding, THG CEO, stated the company's transition into a profitable global leader in Nutrition and Beauty. He acknowledged broader market challenges, including consumer discretionary spending and high whey commodity pricing. THG claims it has implemented initiatives to mitigate these headwinds.

Implications for Asia's Beauty Economy

THG's H1 2026 results reveal sustained consumer demand for K-beauty products in Western markets. This trend indicates continued export potential for Korean beauty brands targeting Europe and beyond. The substantial growth in sales through TikTok Shop also highlights the importance of social commerce channels for market penetration.

Asian beauty brands considering global expansion can observe THG's strategies in leveraging these platforms and focusing on categories like skincare. Furthermore, the expected impact of new EU customs charges on THG's beauty sales is relevant for Asian exporters.

Such regulatory changes can influence pricing strategies and logistical planning for Asian brands shipping products into the European Union.