The Very Group has experienced a significant increase in pre-tax losses.
- Operating profit decreased by 35% compared to last year.
- Total group revenue declined by 4.9% due to economic challenges.
- Very UK sales, representing 87% of total revenue, dropped by 3.8%.
- The company remains focused on improving profitability by targeting high-margin sales.
The Very Group, owner of digital retailers Very and Littlewoods, has faced a troublesome financial period, reporting a pre-tax loss of £22.9 million in the 13 weeks leading up to 28 September, a stark comparison to the £5.8 million loss recorded the previous year.
Operating profit has diminished by 35%, falling to £27.6 million. This reduction is accompanied by a decline in total group revenue, which fell by 4.9% to £450.2 million, exacerbated by ongoing economic pressures.
Within the revenue figures, Very UK holds substantial influence, comprising 87% of sales. However, sales in this division dropped by 3.8% to £392.1 million year on year. The Littlewoods brand experienced a steeper decline, with sales reducing by 14.4% to £45.0 million. This was anticipated as part of a managed decline strategy for the brand.
Despite the challenging retail market, particularly in fashion and sports, there has been a noteworthy improvement in home sales, which are high-margin items. This shift in focus towards more profitable segments is expected to enhance overall business profitability through fiscal year 2025.
Sales in fashion and sports sectors have decreased by 8.6% due to a market characterised by heavy discounts and contraction. Conversely, premium fashion sales have seen a modest increase of 1.6% year on year, and homeware sales rose by 2.8%. Pre-exceptional EBITDA for the group dropped by 10.1% to £54.5 million for the quarter.
The Very Group is navigating a difficult market with strategic focus on high-margin products to enhance future profitability.
