// Very Group retail sales dropped 6.7% in its first quarter as pre-tax profit fell from £9m to £2.2m
// The group saw sales decline in electricals, home and sportswear
Very Group sales and profits dipped in its first quarter amid “difficult conditions” for online retailers.
Group retail sales dropped 6.7% in the 13 weeks to 1 October, while EBITDA fell 13.6% to £58.1 million.
Pre-tax profits plunged from £9 million to £2.2 million.
Sales at core brand Very was down 5.1%. The retail group said that this was “a robust performance against the challenges faced by the online non-food market”.
Fashion and sports sales fell 9.6%, which the retailer said was driven by a reduction in sportswear as fashion sales remained stable.
Very Group said it had seen “positive performances” in ladies high street brands, and celebrity, designer and premium brands, although this was offset by a decline in casualwear.
Electricals sales dropped 5.1%, although the group pointed out it was pitched against a strong period last year for gaming.
However, it saw a strong demand for air fryers over the period, which helped drive 23% growth in small domestic appliances sales.
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Home sales plunged 8.8%, which it said was in line with its expectations as customer spending habits normalise post Covid-19.
The retailer’s toys, gifts and beauty sales were stable on a group level but up 3.4% at Very. It experienced “strong double digit growth in toys and personal care” over the quarter.
The retailer 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 fall in sales, revenue from its credit offer Very Pay jumped 6.5% to £99.9 million.
Last month, Very Group posted a small increase in full-year profits, which it said was down to its “resilient and adaptable” business model.
Pre-tax profit edge up 2.2% to £63.9 million in the 52 weeks ended 2 July while Very revenue grew 12.6% and group revenue was up 4.8%, compared with pre-pandemic.
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