Very Group has seen its pre-tax profits fall by over 90% as its costs soared.
The company, which owns Very and Littlewoods posted pre-tax profits of £4.6m, compared to £63.9m the previous year.
That’s despite Group revenue remaining flat at £2.15bn.
The reason, it said, was the heightened cost of funding to the company – its finance costs increased 43.5% in FY23.
“Despite challenging economic conditions, our adaptable business model has driven market-beating top-line growth, improved cash flow year-on-year, and our best-ever customer satisfaction score. It’s down to the investments we made in pricing and our digital customer experience, our cost discipline, and the commitment of our people in serving families in the UK and Ireland,” stated CEO, Lionel Desclée.
“In the year ahead, we will continue to deliver a combination of investment-led growth – with a clear focus on improving our digital customer experience – and diligent cost management. While the market will remain challenging, we’re confident our proven and resilient business model, which combines multicategory online retail with flexible ways to pay, will continue to deliver for our customers.”
During the last 12 months, the company has invested in its tech transformation, including migrating its systems to a new ecommerce platform, Skyscape.
It has also launched an AI platform in partnership with Amazon Web Services to “transform retail forecasting operations.” This means the Group should be better prepared for changes in demand and can ensure it has the right products available at the right time.
Very has signed a new partnership with Constructor to implement AI-powered search, browse, and autosuggest tools across its website and app.
Virtual make-up try-on features that use augmented reality to allow customers to discover and choose products that best match their needs.
