The Very Group has reported a significant increase in pre-tax losses.
- Sales for the first quarter decreased by 5%, reflecting a challenging market.
- The company’s flagship brand, Very UK, saw a revenue drop of nearly 4%.
- Fashion and sports categories experienced the most substantial declines.
- Company leadership remains optimistic about future profitability.
The Very Group has witnessed a substantial widening of its pre-tax losses, escalating to £22.9 million in the first quarter, up from £5.8 million the previous year. This financial downturn coincides with a 5% drop in group sales, amounting to £450.2 million. The company’s flagship brand, Very UK, reported a revenue decrease of 3.8% to £392.1 million, while Littlewoods experienced a substantial 14.4% decline, bringing its earnings down to £45 million.
Retail sales for the Very Group saw a 4.6% reduction to £286.4 million, primarily due to an 8.6% dip in the fashion and sports sectors. These segments have suffered in a market marked by heavy discounting and contraction. Meanwhile, the beauty and home categories managed modest growths of 4.2% and 2.5%, respectively. However, the electrical goods sector did not fare as well, recording a decrease of 4.4%.
CEO Robbie Feather attributes the resilience of the company’s retail performance to its unique business model, which blends multicategory digital retail with flexible payment options. Feather stated, “Our unique business model, combining multicategory digital retail with flexible ways to pay, is more relevant than ever for our customers.” He emphasised the importance of cost management and customer loyalty in navigating the challenging market conditions.
Despite the current challenges, the Very Group is optimistic about strengthening its profitability in the upcoming financial year 2025. The company remains confident that its strategic initiatives and robust financial management will lead to improved earnings.
Very Group is navigating a challenging market with cautious optimism, focusing on strategic resilience and profitability.
