The Very Group, owned by the Barclay family, has announced a drop in annual revenue with declines in clothing and sports product sales.

For the fiscal year ending June 29, the company’s revenue fell by 1 percent to £2.13 billion, attributed to a “challenging environment.” Despite this, earnings before interest and taxes increased to £267.6 million, compared to £246.9 million in the previous year.

Performance varied across the group, with Very UK showing better results. Here, sales rose by 0.7 percent to £1.84 billion. Conversely, Littlewoods experienced a revenue decline of 12.2 percent, totaling £222.8 million.

Sales of electrical goods at Very UK saw an increase of 0.9 percent, alongside a 3 percent rise in toy, gift, and beauty product sales. However, adverse weather conditions contributed to a significant 16.5 percent revenue drop from garden products, while the fashion and sports categories also faced a setback, declining by 5.5 percent.

Robbie Feather, CEO of the Very Group, commented, “In a tough environment, our results demonstrate a resilient retail performance, which remains ahead of the online non-food market in the UK, alongside a continued strong performance from Very Finance.”

He added, “This resilience in revenue, coupled with an ongoing focus on effective cost management, has propelled robust earnings growth over the year.”

Very attributes around 90 percent of its sales to items purchased via monthly installment plans through its consumer finance product, with these loans being packaged into a securitization facility.

The finance sector of the group reported a 3.1 percent hike in annual revenues, reaching £435 million, supported by a 2.3 percent growth in the group’s average debtor book.

Although Very experienced a surge in shoppers during the pandemic, the company has reported a decrease in sales in the aftermath of reduced consumer spending.

The online retailer, established by Sir David and Sir Frederick Barclay, emerged from their acquisition of Littlewoods and the home shopping division of Great Universal Stores. Very offers “buy now, pay later” financing across its assortment of clothing, home goods, and beauty products, remaining a key asset for the Barclay family.

In February, the Very Group secured £125 million in new debt funding from Carlyle Global Credit and IMI, intended to bolster future growth. Additionally, former UK chancellor Nadhim Zahawi was appointed as the new chairman in June.

The Barclay brothers, whose careers began in property, expanded into an extensive business empire that includes newspapers, real estate, retail, and hotels. The family has recently begun to divest some assets such as the logistics company Yodel and their media holdings.