The Very Group has reported widening pre-tax losses as sales took a hit in the first quarter.
- Pre-tax losses for the group increased to £22.9 million, significantly higher than last year’s £5.8 million.
- Sales overall fell 5% to £450.2 million, with notable declines in both their main brands, Very UK and Littlewoods.
- The fashion and sport categories were particularly impacted by an 8.6% slump, contributing to decreased retail sales.
- Despite challenges, the company remains optimistic about strengthening profitability in the coming fiscal year.
The Very Group, known for its prominent e-commerce operations, has seen pre-tax losses rise significantly to £22.9 million for the first quarter of the fiscal year, up from £5.8 million recorded the previous year. This increase in losses corresponds with a 5% drop in overall group sales, totaling £450.2 million for the period ending 28 September.
Within its portfolio, the flagship Very UK brand experienced a sales decline of 3.8%, reaching £392.1 million. Meanwhile, Littlewoods, another key brand under the Very Group umbrella, suffered a sharper decline, with sales dropping 14.4% to £45 million.
Investigating the specifics of the retail sales, there was a 4.6% decrease, amounting to £286.4 million. The fashion and sport sectors bore the brunt of this downturn, recording an 8.6% dip primarily due to a highly competitive and discount-driven market environment. However, not all areas saw declines; beauty and home categories saw growth, with increases of 4.2% and 2.5%, respectively. However, electrical sales did not fare well, seeing a 4.4% decrease.
Robbie Feather, CEO of Very Group, commented on the results by emphasizing the resilience of their retail performance in a difficult market. Feather cited their unique business model, which combines multi-category digital retail with diverse payment options, as a key factor in maintaining their position ahead of the UK online non-food market. He expressed confidence in continued earnings growth, attributing it to strong cost management and customer loyalty.
Although the market conditions are challenging, the Very Group remains optimistic about the future. The company has indicated expectations of improved profitability in FY25, driven by their resilience and strategic focus.
The Very Group demonstrates resilience amid challenging market conditions, remaining optimistic about future growth.
