The Very Group has faced increased financial difficulties, reporting notable losses.
- In the first quarter of fiscal year 2025, the company reported a pre-tax loss of £22.9 million.
- Operating profit dropped significantly by 35% year-on-year to £27.6 million.
- The group’s total revenue experienced a 4.9% decline, reaching £450.2 million.
- Despite these challenges, some segments showed resilience, with homeware sales rising by 2.8%.
The Very Group has reported significant financial setbacks, reflecting broader economic challenges impacting the digital retail sector. The company, which manages brands such as Very and Littlewoods, announced a pre-tax loss of £22.9 million for the 13 weeks ending 28 September, a stark increase from the loss of £5.8 million in the same period the previous year.
Operating profit has also taken a substantial hit, decreasing by 35% year-on-year to £27.6 million. This decline underscores the difficulties faced by many in the industry amid persistent economic pressures.
Total group revenue has declined by 4.9%, settling at £450.2 million. The digital retail space has been particularly hard-hit, with Very UK—a prominent brand within the group—experiencing a 3.8% reduction in revenue to £392.1 million year-on-year. Meanwhile, Littlewoods saw its sales shrink by 14.4% to £45.0 million, aligning with the group’s strategic managed decline for the brand.
The retail market’s difficulties were particularly visible in the fashion and sports sectors, where sales plummeted by 8.6%. This decrease is attributed to a “heavily discounted and contracting market.” Nevertheless, the group did note a marginal growth of 1.6% in premium fashion sales year-on-year, signalling potential areas of opportunity.
Homeware sales, in contrast, demonstrated a positive trend with a 2.8% increase, indicating a shift in consumer spending behaviour towards non-fashion items that offer higher margins. This shift is part of the group’s broader strategy to focus on higher-margin sales while maintaining stringent cost discipline to enhance profitability in the fiscal year 2025.
Despite the unfavourable market conditions, The Very Group achieved a pre-exceptional EBITDA of £54.5 million for the quarter, marking a 10.1% year-on-year decline. This performance highlights the challenges facing digital retailers in an unpredictable economic environment.
The Very Group’s financial results reflect a challenging economic backdrop, though targeted strategies in high-margin areas show potential for recovery.
