Very Group Q3 revenue drops, sports category sees strength
Its Very UK flagship brand reported a drop in revenue of 2.5 percent to 1.4 billion pounds, while its Littlewoods subsidiary also saw revenue fall 15.1 percent to 148.1 million pounds.
Despite growth in Toys, Beauty and Home, the Fashion and Sports category saw sales fall 4.9 percent. The drop comes as the company continues to annualise against Nike's decision to move to a direct-to-consumer model.
Excluding the brand's impact, the category posted a growth of 2.3 percent. Sports particularly welcomed strong growth, with sales up 24.6 percent over the period in line with the company's strategic focus on the category.
Very Group's gross profit came to 563.1 million pounds for the third quarter, corresponding to a statutory gross margin rate of 35.1 percent, increasing 0.3 percentage points on last year.
Its operating profit before exceptional items also increased from 161 million pounds to 173.6 million pounds.
As a result of a 'robust margin and cost performance', Very reported a pre-exceptional EBITDA of 214.9 million pounds, a year-on-year increase of 8.9 percent. Adjusted EBITDA also rose 11.4 percent to 215.4 million pounds.
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