Very Group said that although retail sales dropped 6.7% from July to October, toy sales showed growth.
Both sales and profits showed a decline in the group’s first quarter, and the board put this down at least partially to “difficult conditions” for online retailers.
Very Group said that group retail sales dropped -6.7% in the 13 weeks to 1st October, while EBITDA fell -3.6% to £58.1m. Pre-tax profits fell from £9m to £2.2m.
Sales at core brand Very were down 5.1%, although the group said this was “a robust performance against the challenges faced by the online non-food market”.
The retailer reported that the toys, gifts and beauty category was up +3.4% at Very, saying it experienced “strong double digit growth in toys and personal care” over the quarter.
Very toy sales were up 21% YOY.
A statement read: “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 overall sales, revenue from credit offer Very Pay jumped +6.5% to £99.9m, meaning that last month, the group was able to post a small increase in full-year profits, which it said was down to its “resilient and adaptable” business model, adding: “Despite the adverse economic environment, our business has delivered profitability and earnings, with positive pre-exceptional EBITDA.”
Earlier this year, Very Group reported that its full-year profits (to July) had risen, with CFO, Ben Fletcher, hailing a ‘robust’ performance, driven by ongoing structural growth, an integrated business model, staff expertise and shrewd management of costs.
Pre-tax profit rose +2.2% to £63.9m in the 52 weeks ended 2nd July, while Very revenue grew +12.6% and group revenue increased +4.8%, compared with pre-pandemic.
