THG's Myprotein Tests Physical Retail After Return to Profit

THG reported a return to profit in its latest annual results after a difficult 2024. Myprotein and Lookfantastic drove the reversal. The group cut logistics spending, renegotiated supply contracts, and slowed acquisitions. That discipline produced earnings that the market views as repeatable.

Later in April, Myprotein took its activewear range onto the high street for the first time. A partnership with Footasylum put the line across seven UK stores. The move shifts Myprotein from a pure direct-to-consumer (DTC) model into a blended channel. For investors tracking consumer brands, that trade-off is the core question.

THG's Profit Turnaround Driven by Myprotein and Lookfantastic

The annual results showed THG stopped the cash burn that defined 2024. Myprotein and Lookfantastic accounted for the bulk of the improvement. Neither brand needed a turnaround. Both were already cash-generative. What changed was discipline elsewhere: THG cut logistics spending, renegotiated supply contracts, and slowed acquisition activity.

Margin composition matters in this story. DTC brands like Myprotein typically enjoy gross margins of 55–65%. They offset that with heavy marketing spend. A retail partnership shifts some variable cost into a percentage-of-sale arrangement with the partner. The trade-off is lower gross margin per unit in exchange for lower customer acquisition cost. The net effect depends on incremental volume from Footasylum floor space and whether it cannibalizes online sales.

Myprotein's Footasylum Trial: DTC to Offline Economics

The Footasylum partnership puts Myprotein's activewear range in front of a younger, fashion-focused audience. Seven stores is a small footprint. The key detail is execution risk. Shelf placement, merchandising, and return rates for apparel differ from the supplement business. If the trial works, the logical next step is wider rollout across other retailers. If it does not, THG can pull back without a long lease or inventory writedown.

For investors reviewing stock market analysis, this is a classic omni-channel pivot. Myprotein already has a strong online base. Adding a physical channel can open a new growth vector. The 2025 annual results will show the impact on THG return on invested capital. The Footasylum deal is too small to move the needle on its own. It signals that management is willing to test offline when brand equity supports it.

The Scalability Question for THG's Retail Pivot

The critical follow-up is scale. If Myprotein expands beyond seven stores within three quarters, the narrative shifts from recovery to growth. If the test stays static, the economics did not work or THG is content with a pure DTC model and is using the Footasylum deal as a marketing experiment.

THG also benefits from Lookfantastic, which has offline potential in beauty. A dual-brand retail strategy could give the group negotiating leverage with retailers. For now, the Footasylum partnership is a low-risk, high-information experiment. The spring-summer sell-through and any mention of same-store repeat rates in the next trading update will determine the next move. Investors should watch for signals on whether Myprotein can repeat its online margin structure in a physical format.

Best Stock Brokers list THG (THG) among actively traded UK names during earnings seasons.