Economic pressures impact Very Group's Q2 revenue, but EBITDA rises

The Very Group's FY25 second quarter results reflected continued economic headwinds, leading to a 4.5 percent revenue decline, totaling 1.17 billion pounds. However, the multi-brand online retailer demonstrated resilience by boosting adjusted EBITDA by 17.4 percent year-on-year to 150.2 million pounds.

“As expected, the market in Q2 FY25 continued to prove challenging given ongoing economic pressures and as a result, we saw a decrease in total Group revenue. Despite this, we have delivered an improved performance in Q2, with our continued focus on cost control contributing to increased adjusted EBITDA,” the company said.

Very UK, the company's flagship brand and accounting for 87 percent of sales, saw a 3.2 percent revenue decrease to 1.02 billion pounds. Littlewoods revenue fell by 15.3 percent to 109.2 million pounds, consistent with its planned strategic decline.

Year-to-date, Group retail sales dropped by 4.4 percent to 953.3 million pounds, with Very UK retail sales down 3.1 percent to 819.2 million pounds.

Category performance varied. Toys, gifts, and beauty experienced a slight 0.6 percent decline, though beauty itself saw a 6.3 percent increase. The home category grew by 7.3 percent, driven by strong sales in home accessories, textiles, and upholstery.

Fashion and sports declined by 6 percent amid a heavily discounted and contracting market. Notably, excluding the impact of Nike, the category achieved 1.7 percent growth, with sports specifically surging by 18.4 percent.

The company generated 395.2 million pounds in gross profit, resulting in a statutory gross margin rate of 33.7 percent, a 0.3 percentage point increase from the previous year.