Retail
Whisper it quietly, but could THG drop out of the FTSE 250 Index (again)?
The Manchester-headquartered online retailer only returned to the prestigious FTSE 250 in September 2025 — three months after exiting when its share price dipped to 25p.
The company’s share price has been up and down like a rollercoaster ever since — topping 50p in January on the back of a stellar Q4 2025 trading update — but it is now back at 28p, giving it a market cap of £467.51m.
The share price woes have raised the possibility that THG could suffer the ignominy of dropping out of the FTSE 250 again unless it can turn its fortunes around.
However, talk of THG’s demise is premature for several reasons.
Its current market cap is significantly higher than when it first dropped out of the FTSE 250 Index last June.
In addition, THG is due to deliver its full-year results in April, and confidence levels are high on the back of a number of partnership announcements — more on these later.
However, the main cause for optimism comes from a belief that the influence of THG’s traditional nemesis — hedge funds — may have peaked.
By way of background, hedge funds have a reputation for deploying aggressive strategies in pursuit of high returns — and THG has regularly been on the wrong end of their short-selling activity.
Short selling means investors profit if the value of an asset falls.
THG CEO and co-founder Matt Moulding has not been shy about accusing hedge funds of building negative narratives around listed companies to drive down their share prices.
The good news for Moulding is that the days of peak short selling may be over — which would be positive for THG’s beleaguered share price.
According to Short Interest Tracker, a tool that shows how much of a company’s shares are being shorted, just 0.59 per cent of THG’s shares are currently shorted — down from a peak of around 4 per cent in 2023.
Put simply, this means THG’s share price is less exposed to the whims of hedge funds.
One theory is that those behind the short positions have already made their money and exited.
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THG’s £103m sale of Claremont Ingredients in August 2025 — and hints that more disposals could follow — was welcomed by the market.
At the same time, THG’s position has been strengthened by Moulding’s decision in February 2026 to buy £8.5m of shares — taking his stake in the company he co-founded in 2004 to 25.4 per cent.
At the time, THG’s share price rose 7 per cent to 37.20p, pushing its market cap back above £600m.
Whatever happens, it has been a curate’s egg of a year for THG, with its trading performance not matched by its share price.
On January 13, 2026, THG told the London Stock Exchange that it had ended 2025 with its strongest quarter of trading, with group revenue up 7 per cent.
This meant THG delivered full-year revenue growth of 2.3 per cent — its first year of growth since 2021.
At one point, the company’s share price rose above 50p, but it then fell 9 per cent on the day and has since fallen back to around 28p.
This is despite the announcement that Myprotein, the world’s leading online sports nutrition brand, has signed a strategic partnership with Greencore, a leading convenience food producer, and an eye-catching deal with Mars.
FTSE indices are reviewed quarterly and the next review isn’t due until June. Watch this space.
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