The Very Group profits plummeted 92% over the year, dragged down by a surge in operating costs.
The group, which operates Very and Littlewoods, posted a pre-tax profit of £4.6m in the 52 weeks to 1 July 2023, down from £63.9m.
It attributed the sharp drop to the “heightened cost of funding to the company”, which rocketed 43.5% during the year as a result of the persistently high interest rates.
Group sales were broadly flat at £2.15bn, but were ahead of the rest of the online non-food retail market and represented a market share growth, the retailer said.
Very UK revenue edged up 1.9% to £1.82bn, compared to £1.79bn the year before.
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Chief executive Lionel Desclée said: “Despite challenging economic conditions, our adaptable business model has driven market-beating top-line growth, improved cash flow year-on-year, and our best-ever customer satisfaction score.
“It’s down to the investments we made in pricing and our digital customer experience, our cost discipline, and the commitment of our people in serving families in the UK and Ireland.
“In the year ahead, we will continue to deliver a combination of investment-led growth – with a clear focus on improving our digital customer experience – and diligent cost management.
“While the market will remain challenging, we’re confident our proven and resilient business model, which combines multi category online retail with flexible ways to pay, will continue to deliver for our customers.”
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