Very reports profit growth despite fashion slowdown

The Very Group has reported its third consecutive year of adjusted EBITDA growth, showing resilience despite ongoing challenges in parts of the retail market.

For the 12 months ending 27 June, adjusted EBITDA increased by 3.4% to £317.5 million. Revenue at Very UK rose by 1.3% to £1.86 billion, while overall group revenue remained broadly stable at £2.09 billion.

The retailer also improved efficiency during the year. Operating costs as a percentage of revenue fell by 0.2 percentage points to 22.1%.

Home, toys and beauty were the strongest-performing parts of the business.

Home sales increased by 6.4%, helped by strong demand for home accessories and bedroom furniture. Sales of home accessories rose by 21.5%, while bedroom furniture was up 6.6%.

Toys and beauty also delivered growth, with sales in both categories increasing by 3.2%.

Within toys, boys’ toys performed particularly well, with sales rising by 17%. Fragrance sales also grew, increasing by 4.8%.

Not every category saw growth during the year.

Electrical sales fell by 0.4%, reflecting tough comparisons with the previous year, which benefited from major gaming product launches.

Fashion and sports sales combined were down 4.6% as Very continued to deal with challenging conditions in the fashion market.

However, there were some encouraging signs within sports. Sales in the category increased by 9.7% after the Nike brand was reintroduced during the spring.

Looking ahead, chief executive Robbie Feather said the business is entering FY27 with strong momentum and a refreshed strategy.

The focus will be on strengthening its retail and credit offer, attracting new customers and finding additional opportunities for growth.

Feather said he remains confident about the group’s long-term prospects, pointing to the strength of its operating model and the foundations already in place to support future growth.

What RHR thinks

We believe Very’s results reflect a wider trend across retail. Customers are still spending on home products, lifestyle categories and personal wellbeing, while fashion remains less predictable. Growing profit while group revenue stayed broadly flat shows that efficiency and having strength across multiple categories are now just as important as increasing sales. We expect retailers to continue focusing on commercial, digital and merchandising professionals who can grow successful categories. We also expect demand for leaders who can protect margins and keep customers engaged while spending remains cautious. For candidates, experience in growing categories and improving profitability is likely to be particularly valuable over the coming year.

What this means for hiring. Demand is likely to remain strongest for merchandising, commercial and digital roles linked to growing categories such as home, toys and beauty. There may also be opportunities for senior leaders who can improve profitability, manage costs and maintain customer engagement.