THG Beauty revenue rises on skincare and TikTok Shop momentum

Performance and Channel Dynamics

THG reported group revenue of £828.7m for H1 2026, a 7.2% year-on-year increase. The Beauty division contributed £500.2m in revenue, growing by 5.9% and accounting for roughly 60% of the total. Lookfantastic drove key growth, with skin care sales rising 17.4%. Social commerce also played a major role, as revenue from TikTok Shop increased by 26%.

Customer Base and Brand Portfolio

THG noted customer acquisition through K-beauty, with loyalty membership up 9%. Approximately 90% of Beauty revenue came from returning customers, while D2C orders grew from 15.4 million to 16.1 million. To strengthen its premium positioning, the retailer added over 50 new brands to its roster during the six-month period.

Margin Pressures and Regulatory Headwinds

Despite revenue growth, THG Beauty faced a drop in gross margins to 38.8%, attributed to the timing of manufacturing orders. The company warned that new EU customs charges, effective from 1 July, will weigh on the Beauty sector in the short term. THG expects group revenue growth of around 2% in Q3, with a recovery forecast for Q4.

Implications for B2B Procurement

The data highlights two trends for brands: robust skincare demand in retail and the scaling of TikTok as a sales channel. Procurement teams must monitor two risks: potential cost increases from new EU tariffs and margin impacts from seasonal order timing. Brands should optimize inventory turnover to manage the expected Q3 slowdown and continue investing in D2C loyalty programs to sustain high repeat purchase rates.