THG PLC (LSE:THG) denied Unilever PLC (LSE:ULVR) subsidiary Dermalogica has placed any restrictions on stock in its trading relationship with THG Beauty.
Noting the fall in its share price yesterday, the online retailer said in a statement it knows of “no notifiable reason” for the share price movement.
It also responded to media reports that Dermalogica is among of a number of brands that have reduced supplies to protect their pricing.
“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,” THG said.
The company added 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”.
It noted the 10-year relationship with Dermalogica “remains very positive” but also pointed out that the overall revenues generated from the relationship only accounted for around 0.1% of group sales for 2021.
It said THG Beauty delivered beauty sales of £1.1bn during its 2021 financial year.
THG remains focused on building long-term relationships with its suppliers, the company added.
The shares picked up slightly in morning trade, rising 0.39% to 103.80p, having slumped by more than 8% on Monday to close at 103.4p.