THG said on Tuesday that skincare brand Dermalogica has not restricted supplies to the e-commerce group’s beauty business.
Noting the slump in its share price a day earlier, the company said it “knows of no notifiable reason” for the movement.
The Telegraph reported over the weekend that Dermalogica, which is owned by consumer goods giant Unilever, was among brands that have been restricting the flow of stock to THG due to concerns it is discounting too aggressively to hit sales targets.
However, THG insisted on Tuesday that “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”.
It added: “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 circa 0.1% of FY 2021 sales.”
THG also said it was not aware of any other key supplier to its beauty business who has or who intends to cut supply or take any similar steps.
“THG remains focused on building long-term relationships with its suppliers,” it said.
