The Very Group faces financial turbulence as Q1 sales dip notably.
- Pre-tax losses surged to £22.9 million from £5.8 million a year prior.
- Overall group sales declined by 5% to £450.2 million.
- The flagship brand, Very UK, and Littlewoods showed varied performance.
- CEO remains positive, citing a resilient model and strong customer base.
In the first quarter, the Very Group’s financial results revealed a concerning trend with losses before tax swelling to £22.9 million, dramatically up from £5.8 million the previous year. This significant increase in losses coincided with a 5% drop in group sales, bringing total sales down to £450.2 million.
The detailed breakdown of sales performance highlighted a 3.8% revenue decline for its main brand, Very UK, landing at £392.1 million. Littlewoods fared worse, experiencing a sharp 14.4% drop, reducing its revenue to £45 million.
Further insights into the retail figures showed a 4.6% drop in retail sales to £286.4 million, heavily influenced by an 8.6% decline in fashion and sports categories. This sector was pressured by a contracting market, even as beauty and home categories bucked the trend with rises of 4.2% and 2.5% respectively. Electrical goods saw a 4.4% decline.
Despite the challenging market environment, the Very Group expressed optimism for the future, expecting profitability to strengthen in the fiscal year 2025. According to CEO Robbie Feather, “Our unique business model, combining multicategory digital retail with flexible ways to pay, is more relevant than ever for our customers.” Feather highlighted the company’s capacity for resilience, crediting strong cost management and a robust customer base as key factors facilitating potential earnings growth.
The group remains confident, underscoring the resilience of its retail performance, which it claims was ahead of the online non-food market in the UK. Feather expressed steadfastness in leveraging the inherent strengths of the business to navigate ongoing market difficulties.
The Very Group remains hopeful for future profitability despite current financial setbacks.
