Very Group reports drop in revenue, profit

The Very Group has reported a drop in revenue and profit in the first quarter of the year against a backdrop of “economic headwinds and industry challenges”.

The group, which owns brands Very and Littlewoods, reported a 3 percent drop in total revenue to 469.4 million pounds, which it described as “a robust performance against the challenges faced by the online non-food market”.

Group retail sales in the quarter fell 6.7 percent.

It described its 5.1 percent drop in Very UK retail sales as “expected” and “a resilient result in the context of the challenging retail market”.

Breaking it down by category, group fashion and sports retail sales dropped by 9.6 percent, and at 8.1 percent at Very, driven particularly by sportswear, while fashion alone was “stable”.

Drop in casualwear

Positive sales within ladies high street brands, and celebrity, designer and premium brands, were offset by a decline in casual wear - a category that had boomed during the pandemic.

Adjusted EBITDA came in at 58.2 million pounds, down from 65.6 million pounds a year earlier.

Pre-tax profit dropped to 2.2 million pounds from 9 million pounds.

Commenting on the results, the group said: “As we continue to move through the economic headwinds and industry challenges that began in FY22, our business has continued to show its resilience in the face of difficult conditions.

“Despite the adverse economic environment, our business has delivered profitability and earnings, with positive pre-exceptional EBITDA.”