Manchester e-commerce, beauty and nutrition giant THG plc announced on Tuesday that “it it knows of no notifiable reason” for the fall in its share price on Monday.

THG said 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.”

Shares of THG fell as much as 10% on Monday following weekend newspaper claims that suppliers of beauty products including Dermalogica were restricting the stock they send to THG over concerns about aggressive discounting.

“THG PLC notes the fall in the share price yesterday and confirms that it knows of no notifiable reason for the share price movement,” said THG.

“In response to recent media speculation regarding the restriction of supplies to THG Beauty, THG can also confirm that … 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 added: “The Dermalogica and THG Beauty trading relationship is over 10 years in length and whilst it remains very positive the overall revenues generated are de minimis to the group, at c.0.1% of FY 2021 sales …

“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 …

“THG Beauty added over 200 new beauty brands to its retail destination sites, on a net basis, during FY 2021 …

“THG entered the beauty market at the end of 2010 and, as THG Beauty, has since grown into a business delivering prestige beauty sales of £1.1bn during its 2021 financial year.

“THG remains focused on building long-term relationships with its suppliers.

“THG Beauty is the pre-eminent, digital-first brand owner, retailer and manufacturer in the prestige beauty market, providing a global route to market for over 1,000 third-party beauty brands.

“This makes THG a key partner for brands looking to deliver growth in digital sales.”