Matthew Moulding's online beauty, wellness and software giant THG has denied suppliers are restricting stock over concerns about 'aggressive discounting'.
The Manchester-headquartered group has issued a statement to the London Stock Exchange after reports that Dermologica, which is owned by Unilever, is one of a number of brands that have reduced supplies to protect their pricing.
THG's share price also fell to a new record low on Monday.
In the statement, THG said: "THG notes the fall in the share price yesterday and confirms that it knows of no notifiable reason for the share price movement.
"Dermalogica has not placed and is not looking to place any restrictions on its trading relationship with THG Beauty, including with regard to the supply of stock.
"The Dermalogica and THG Beauty trading relationship is over 10 years in length and whilst it remains very positive the overall revenues generated are de minimis to the group, at c.0.1% of FY 2021 sales.
"It is not aware of any other key supplier to THG Beauty who has or who intends to reduce supply or take any similar steps in relation to THG Beauty.
"THG Beauty added over 200 new beauty brands to its retail destination sites, on a net basis, during FY 2021.
"THG entered the beauty market at the end of 2010 and, as THG Beauty, has since grown into a business delivering prestige beauty sales of £1.1bn during its 2021 financial year. THG remains focused on building long-term relationships with its suppliers.
"THG Beauty is the pre-eminent, digital-first brand owner, retailer and manufacturer in the prestige beauty market, providing a global route to market for over 1,000 third-party beauty brands. This makes THG a key partner for brands looking to deliver growth in digital sales."
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.
The reports 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".
