Shares in Greater Manchester based ThG formerly The Hut Group have fallen this morning after it warned the markets profits will be lower than expected after a further slowdown in sales growth.
The group has reported adjusted earnings of £70 million to £80 million for 2022, previously hit had been forecasting £100m.
It told shareholders that it saw earnings drop due to softer sales, the impact of loss-making parts of the business, and the timing of new contracts but it expects profits to recover over the current financial year due to increased cost-cutting, automation in the US, and “substantially lower” raw material costs.
THG also evealed it had cut 2,000 roles as part of an ongoing reorganisation that would save £100mn a year.
A further £30mn of savings has been identified and will be implemented in 2023. “Lossmaking categories and territories within the THG OnDemand division,” which includes websites such as Zavvi and Pop In A Box, will also be reviewed, the company added in a statement.
