// The Very Group full-year sales and profits increase
// The group said it ‘successfully’ managed costs during the period
The Very Group full-year profits have risen as it heralded its “resilient and adaptable” business model.
The group, which operates digital retailers Very and Littlewoods, saw pre-tax profit edge up 2.2% to £63.9 million in the 52 weeks ended 2 July.
Very revenue grew 12.6% and group revenue was up 4.8%, compared with pre-pandemic results.
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When pitched against its best-ever year in FY21, Very group sales was down 7.3%.
Very retail sales declined 7.7% compared with the same period last year, but grew 15.3% on a two-year basis.
Fashion and sports made a resurgence as customers returned to more normal shopping habits, with Very fashion sales growing 6% year-on-year.
The demand for electrical goods dropped with sales down 12.7%. However, Very Group reported a double digit growth compared to pre-pandemic across all sub-categories.
Homewares declined 22.3% against strong prior year comparatives in all major furniture categories.
The Very Group CFO Ben Fletcher said: “I am pleased to report another robust performance, driven by ongoing structural growth in the Very brand, our integrated business model – which continues to prove resilient as we adapt to changing customer behaviour – and, of course, our amazing people.”
“We also successfully managed costs, achieving a reduction relative to revenue despite inflationary pressures.”
The retailer’s gross margin was broadly maintained at 36.2%, compared to 36.5% last year, due to both the 10.7% growth of its credit business Very Finance and its cost maangement.
Fletcher added: “While the rising cost of living and other economic conditions present challenges for all retailers, we’re confident in our resilient and adaptable business model – which combines multicategory online retail with flexible ways to pay.”
In July, The Very Group appointed former Walmart executive Lionel Desclée as new chief executive, following Henry Birch’s resignation after four-and-a-half years.
Desclée, who was president and chief executive of Walmart’s Japanese business for three years, joined Very Group from McKinsey & Company.
