Ecommerce Giant Struggles Amidst Discounted Market

  • Very Group’s pre-tax losses increase to £22.9m in Q1
  • First quarter sales fall 5% to £450.2m
  • Very UK brand sales down 3.8% to £392.1m, Littlewoods declines 14.4% to £45m
  • Retail sales for Very decrease 4.6%, fashion and sport drop 8.6%
  • Beauty and home categories see growth of 4.2% and 2.5% respectively
  • Electrical category declines 4.4%
  • CEO Robbie Feather highlights resilient retail performance and strong cost management
  • Very Group expects profitability to strengthen in FY25

Very Group, the e-commerce retailer, has reported a widened pre-tax loss of £22.9 million in the first quarter, up from £5.8 million the previous year. Sales for the period fell by 5% to £450.2 million, with Very UK brand sales dropping 3.8% to £392.1 million and Littlewoods declining 14.4% to £45 million. Retail sales for Very decreased 4.6%, primarily due to an 8.6% drop in fashion and sport sales, attributed to a heavily discounted market. Beauty and home categories experienced growth of 4.2% and 2.5% respectively. Electrical sales declined by 4.4%. Despite the challenging environment, CEO Robbie Feather emphasized the company’s resilient retail performance, strong cost management, and loyal customer base as factors contributing to robust earnings growth. The Very Group anticipates an improvement in profitability by FY25.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Very Group’s financial performance, including specific numbers and quotes from the CEO. It also includes relevant context about the market conditions and the company’s outlook for future growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Very Group’s financial performance and the CEO’s perspective on their business model. It also includes specific numbers for sales and market comparisons. However, it lacks a deeper analysis of long-term trends or possibilities, accountability, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Very Group’s pre-tax losses and sales decline, which impacts the company’s financial performance. It also mentions the challenging market environment and the CEO’s focus on cost management and customer base, making it relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it doesn’t meet the criteria for an extreme event happening in the last 48 hours.

Reported publicly: www.retailgazette.co.uk