Very’s profits rise despite fashion sales decline
Very Group has posted its third consecutive year of adjusted EBITDA growth, with a rise of 3.4% to £317.5 million in the 12 months to 27 June.
Revenue at Very UK rose by 1.3% to £1.86 billion, while group revenue remained broadly stable at £2.09 billion.
Subscribe to TRBMeanwhile, operating costs as a percentage of revenue reduced by 0.2 percentage points to 22.1%.
Home was one of the best performing categories, with sales growing by 6.4% year-on-year. The group said this was underpinned by strong performances in home accessories and bedroom furniture, where sales were up 21.5% and 6.6% respectively.
Toys and beauty grew by 3.2%, driven by boys’ toys, which rose by 17%, and fragrance, up 4.8%.
However, electricals declined by 0.4%, as the category annualised significant gaming product releases in the prior year.
Fashion and sports revenue also fell, dropping by 4.6% overall in what Very described as a challenging market. However, its sports offering grew by 9.7%, helped by the return of Nike in the spring.
Looking ahead, Robbie Feather, chief executive at The Very Group, said: “As we enter FY27, we have strong momentum and a refreshed strategy focused on building an even stronger retail and credit proposition, broadening our appeal to win new families and exploring new avenues for growth.
“We are confident in the strength of our business model and the foundations we have in place to deliver long-term growth and continue helping families get more out of life.”
