The Very Group saw its losses deepen during its third quarter and sales remained flat, despite a strong performance in its high-margin home category.
The ecommerce giant posted a pre-tax loss of £82.1m in the 39 weeks to March 28, down from a £5.8m loss from the year before.
However, on an adjusted EBITDA basis, the retailer delivered 6.9% growth to £135.2m driven by gross profit growth and securitisation interest reductions offsetting increased operating costs.
Revenues remained flat for the period at £1.6bn. A 1.9% increase in sales at Very UK to £1.4bn and 8% growth in Very Finance to £348.9m helped to offset an 11.3% decline in the managed decline of its Littlewoods business.
The retailer said its higher-margin home category was up 6.3% in the third quarter following strategic investment, with sales of home accessories and bedroom furniture up 22.7% and 6.1% respectively.
Fashion and sports sales declined 4.5% in what the group described as a competitive market, despite a host of new brands driving a 7.5% increase in sports sales.
Looking ahead, the group said it enters the final quarter of the year with good momentum and a clear plan for further growth. It expects to deliver a full year EBITDA of £310m to £320m.
No comments yet