Shares in THG have fallen to a new record low after it was reported that stock being sent by suppliers of beauty products is being restricted over concerns about 'aggressive discounting'.
A Telegraph article published at the weekend said Dermologica, which is owned by Unilever, is one of a number of brands that have reduced supplies to the Manchester-headquartered group to protect their pricing.
The newspaper added that an industry source confirmed other suppliers were taking similar action against THG websites such as Lookfantastic.
THG's shares fell by more than 8% on Monday to close at 103.4p, a new low for the group.
The group's share price 12 months ago was more than 720p.
According to the report, a THG spokesman said: "At Lookfantastic we are proud of our strong and close working partnerships we have across all of our supply base.
"We work together with our partners to ensure we have the best products available and provide great value for all of our customers."
The report comes after revenue surged past the £2bn mark at THG during 2021, while the group said it expects a further 25% increase in 2022.
The company recently reported a revenue of £2.178bn for the 12 months to December 31, 2021, up from the £1.613bn it posted in 2020.
Its beauty division's revenue increased from £751.6m to £1.116bn, nutrition went up from £562.3m to £659.5m, THG OnDemand rose from £101.3m to £128.1m while THG Ingenuity jumped from £137.3m to £194.3m.
During the fourth quarter, THG's group revenue rose from £559.8m to £711.7m, while increases were also reported for all divisions.
The group added its adjusted EBITDA margin for 2021 is set to be between 7.4% and 7.7%, compared to market expectations of c.7.9%, because of "adverse foreign currency movements".
