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Very Group hails strong Christmas season trading

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January 14, 2025

Very Group has released its Christmas trading report saying it enjoyed “strong” trading growth at its key Very operation, “driven by exceptional sales in [the] Home and Toys, Gifts & Beauty categories”.

The company, which also owns the legacy Littlewoods business, said the seven weeks to 27 December saw Very UK delivering retail sales growth of 2.3% year-on-year, “supporting group retail sales growth of 0.5%”. It didn’t give specific figures for Littlewoods but the overall company figure suggests its results were negative as the firm continues to focus all its efforts on Very itself.

Excluding the impact of Nike sales, Very UK and group retail sales grew by 4.5% and 2.8%, respectively.

Following Nike’s decision to switch to a direct-to-consumer model, the results exclude the brand’s sales from both the current and prior year to remove distortion caused by the winding down of Nike stock.

As mentioned, its standout categories in the festive period were Home (up 15%) and Toys, Gifts & Beauty (up 7.3%). Fashion & Sports saw less impressive 2.9% growth but the category rose 11.2% excluding Nike and the fact that it grew at all was encouraging in the current environment. Menswear was a strong category within Fashion & Sports.

Games consoles, perfumes and pillows were among the best-selling items, with LEGO and air fryers also performing well. Marc Jacobs perfumes did particularly well too.

Unlike some retailers that had fairly early cut-off times for Christmas delivery, Very maintained its next-day delivery service throughout the peak period, with a cut-off of 7pm on 23 December for delivery before Christmas.

CEO Robbie Feather said he was “delighted with our strong peak trading performance” and that “we delivered growth in almost all categories”. 

He added that consumers “left their shopping later” this time, “but when the time came, they made the most of our offering, with this momentum carrying on into our Boxing Day and January sales. Looking ahead, we remain focused on the rest of 2025 which we expect will remain highly competitive. We are confident that our proposition, which combines multi-category digital retail and flexible ways to pay, will continue to be valued by our customers, providing them with a one-stop-shop for everything they need”.

The company said its “strong retail trading and ongoing cost management means we expect YoY adjusted EBITDA growth of 16%-18%”.

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Fashion

Burberry names new exec in charge of tech team

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January 31, 2025

Burberry announced a key appointment on Friday with the luxury business saying it will soon have a new chief information officer.

Charlotte Baldwin

It has appointed Charlotte Baldwin to the role and she’ll join the business at the end of March. Baldwin will be responsible for leading Burberry’s global technology team and will join the executive committee. She’ll report directly to Burberry CEO Joshua Schulman

He described her as “a highly experienced technology and digital leader with a track record of leading large-scale digital transformation”.

She hasn’t previously worked in the luxury fashion sector but has wide-ranging experience across some major-name businesses in Britain.

She’s currently the global chief digital and information officer at coffee chain Costa Coffee where she oversees the company’s technology, digital and data organisation. 

Prior to joining that firm, she was the chief information, digital and transformation officer at private healthcare giant Bupa’s Bupa Insurance unit. She’s also held senior roles at Freshfields Bruckhaus Deringer, Pearson and Thomson Reuters.

Burberry has been navigating a tough period of late and Schulman joined in the top job last year, tweaking the firm’s strategy. His approach seems to be paying off with the company last week porting improved results, although the turnaround is still undeniable a work in progress.

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Gloucester Quays joins the record-breaking band of shopping centre successes

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January 31, 2025

Another day, another shopping centre delivering a “record-breaking” performance in 2024. This time it’s Gloucester Quays “capping off another year of considerable growth”, for the owner/operator Peel Retail & Leisure.

That included record Christmas trading at the key Gloucester mall, which helped overall sales for the year finish 6.7% ahead of the national average. Across November and December, retail sales grew 3.6% compared with 2023.
 
Looking at 2024 in total, an overall 7.4% year-on-year sales increase across its tenants was split between 6.1% for retail, and 8.5% for F&B.

But there was also double-digit growth from leading fashion, homewares, and outerwear brands including Next, Skechers, All Saints, Mountain Warehouse, Puma, Crew Clothing and Suit Direct. 

It said sustained growth was seen across all categories “points to the increasing relevance of the Gloucester Quays experience”.

Paul Carter, asset director at Peel Retail & Leisure, added: “There have been various headlines this month about how challenged retail was around Christmas, so to have Gloucester Quays performing so well is a real credit to our team and our brands.

“These results also serve as a reminder of how relevant and in demand this outlet is. We have experienced consistent growth for several years, and that success can be put down to the quality of our offer and waterside environment. There is no doubt our catchment is responding to how we have evolved Gloucester Quays, as an urban outlet that combines a compelling shopping environment with dining and leisure to fit all tastes and needs, benefitting from a heritage waterside setting that few regionally can match.”

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Chopard fragrance licensee Give Back Beauty agrees to buy rival AB Parfumes

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January 31, 2025

Italy’s Give Back Beauty, which makes perfumes for luxury brands such as Chopard and Zegna, on Friday said it had agreed to buy domestic rival AB Parfums to grow its distribution operations and add licensing deals.

Corrado Brondi, founder and president of Give Back Beauty

AB Parfums has an agreement with beauty giant L’Oréal Group to distribute some of its fragrances such as Ralph Lauren, Maison Margiela and Diesel. It also produces and distributes fragrances for brands such as Trussardi and Laura Biagiotti.

Fragrances have been outperforming the broader beauty sector and Give Back Beauty founder and Chairman Corrado Brondi told Reuters his company did not rule a possible bourse listing in the future, adding it had no financial need for it at present.

Brondi said AB Parfumes had sales of around €100 million, which would add to Give Back Beauty’s net revenues that totalled around €300 million in 2024.

Give Back Beauty, which was founded in 2019 and has a distribution deal with Dolce & Gabbana and a beauty license with Tommy Hilfiger, has a core profit margin currently a little over 15%, it said.

AB Parfums is being sold by Italy’s Angelini Industries, a family-owned group that is mostly active in the pharmaceutical sector.

Give Back Beauty’s business is currently focused on fragrances, which represent roughly 70% of its revenues, but it aims to grow its skincare, make-up and haircare product lines, Brondi said. 
 

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