(Corrects first paragraph to clarify that the company expects 2021 revenue to be 30%-35% higher than 2020, removes reference to 10% increase in 2021 outlook)
Jan 12 (Reuters) - The Hut Group said on Tuesday it expects 2021 revenue to be 30%-35% higher than 2020, underpinned by its acquisition of Dermstore.com and a surge in online demand for its beauty products amid coronavirus lockdowns in the UK.
The Hut Group had earlier predicted a 20% to 25% surge in its medium-term revenue before announcing last month that it would buy Dermstore, an online retailer owned by Target Corp , for $350 million to bolster the presence of its beauty brands in the U.S. market.
The British retailer said it now expects 2021 revenue to be between 30% and 35% higher than 2020 revenue of about 1.61 billion pounds.
E-commerce players have seen a surge in online sales due to restrictions imposed on the movement of people and the closure of malls and other leisure destinations during national lockdowns.
England imposed the third national lockdown last week.
The company, which helps sell retail brands, including Lookfantastic and skincare group ESPA, said fourth-quarter 2020 revenue jumped 51% to 558.7 million pounds ($757.26 million), ahead of its expectations.
Last month, THG raised its 2020 revenue forecast for the second time in less than two months due to strong demand during Black Friday and Cyber Monday. The lockdown fetched the e-commerce retailer nearly 11 million customers in 2020.
The Hut Group made its London stock market debut in September, sealing a 5.4 billion pound listing and making it one of London’s largest tech IPOs to date and the biggest by market cap since Royal Mail in 2013.
“We have also started reinvesting capital raised at IPO, including over 360 million pounds in M&A, principally within the US beauty sector,” said Chief Executive Officer Matthew Moulding.
$1 = 0.7378 pounds Reporting by Yadarisa Shabong in Bengaluru; Editing by Shailesh Kuber and Sherry Jacob-Phillips