The Very Group Q1 hit by 9.6% decline in fashion and sports retail sales
The Very Group has revealed a 6.7% decrease in revenue in its Q1 interim results, citing challenges from the industry and "economic headwinds".
In a trading update, the UK-based group commented: “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 adverse economic environment, our business has delivered profitability and earnings.”
Total revenue decreased by 3% to £469.4 million.
The report also includes the following findings:
- Very Group retail sales decreased by 6.7%
- Very Group total revenue decreased by 3% to £469.4 million
- Very UK retail sales declined by 5.1%
- In Q1 FY23, it delivered £171 million of gross profit
- Statutory gross margin rate of 36.4%, 2.0% pts down on last year
- Overall operating cost decreased year on year as a percentage of revenue, at 24.2%
Examining individual categories, fashion and sports retail sales declined by 9.6%. Electrical (which is the largest category at 44% of retail sales) fell 5.1%, despite a 23% growth in sales of small domestic appliances reflecting demand for products such as air fryers.
Home revenue also decreased, down 8.8% year on year driven by lower sales of garden furniture. However, Toys, Gifts, and Beauty saw stable sales, growing 3.4%.