LONDON (Reuters) -E-commerce company THG said Dermalogica had not restricted the supply of stock to THG Beauty after a Telegraph report said the Unilever brand had taken action over concerns about discounting on the site.
“Dermalogica has not placed and is not looking to place anyrestrictions on its trading relationship with THG Beauty, including with regard to the supply of stock,” the British company said on Tuesday.
THG said it was not aware of any other key supplier to THG Beauty who had or who intended to reduce supply or take any similar steps in relation to THG Beauty.
Shares in THG, which listed in September 2020 and rose to 838 pence in January 2021, fell to a new low of 102 pence on Monday, valuing it at 1.24 billion pounds ($1.68 billion).
THG said it knew of no notifiable reason for Monday’s share price movement.
The Telegraph said on Saturday that Dermalogica was one of a number of brands that were restricting supplies to THG because it was discounting too aggressively to hit sales targets.
Unilever declined to comment, the Telegraph said.
($1 = 0.7366 pounds)
(Reporting by Paul Sandle; Editing by Kate Holton and James Davey)
