The Very Group Achieves Record Earnings Amidst Retail Headwinds: A Strategic Review of FY26

The Very Group, the digital powerhouse behind the online department store Very, has reported a landmark financial year for the 52 weeks ending 27 June 2026. Despite a volatile economic climate characterized by shifting consumer habits and persistent inflationary pressures, the group has managed to secure the best earnings performance in its history. By leaning into its unique hybrid model—blending multi-category retail with flexible credit options—Very has demonstrated a resilient business structure that continues to capture the attention of UK families.

Main Facts: A Record-Breaking Financial Performance

The headline figures for FY26 underscore a period of disciplined execution. The group reported an adjusted EBITDA of £317.5m, representing a 3.4% increase compared to the previous year. While group revenue remained steady at £2.09bn, the company saw a 1.3% growth in its core UK market, reaching £1.86bn.

This financial stability is particularly notable given the wider struggles of the UK retail sector. By focusing on operational efficiency and a refined product assortment, The Very Group has successfully navigated a period of reduced discretionary spending. The company’s ability to maintain its top-line revenue while simultaneously growing its profitability metrics highlights a strategic pivot toward higher-margin categories and more efficient logistics.

Chronology: The Journey Through FY26

The fiscal year 2026 was marked by a series of deliberate operational shifts and technological milestones that defined the company’s trajectory:

• Early FY26 (July – September 2025): The focus was on stabilizing supply chains and onboarding new brand partners. The company began its aggressive push to expand its beauty and homeware categories.
• Mid-Year (December 2025 – February 2026): The holiday trading period proved pivotal. Strong performances in toys and fragrance helped offset seasonal dips in fashion and electricals. During this time, the company’s investment in the Skyscape technology platform began to bear fruit, allowing for greater site stability during peak traffic.
• Spring 2026 (March – May 2026): A major turning point occurred with the high-profile return of Nike to the platform, signaling a renewed strength in the sports category. This period also saw the expansion of the delivery infrastructure through a strategic partnership with InPost.
• Year-End (June 2026): The successful completion of the Skyscape migration and the finalized annual results solidified the year as a transformational one for the group.

Supporting Data: Category Performance and Market Dynamics

The Very Group’s performance in FY26 was a story of contrasts. While some departments thrived under changing consumer priorities, others faced the brunt of a challenging market environment.

The Winners: Home, Toys, and Beauty

The home division emerged as the crown jewel of the year, with overall sales rising 6.4%. Within this, home accessories saw a staggering 21.5% growth, suggesting that consumers are continuing to invest in their living spaces even as wider economic uncertainty lingers. Bedroom furniture also saw a healthy 6.6% increase.

The toys and beauty sectors both posted a 3.2% growth rate. Specifically, the boys’ toys category surged by 17.0%, and the fragrance category—often viewed as an affordable luxury—saw a 4.8% uptick. These gains suggest that Very’s ability to curate specific, high-demand items continues to resonate with its core demographic of families.

The Challenges: Fashion, Sports, and Electricals

In contrast, the broader retail environment impacted the group’s fashion and sports sectors, which saw a combined decline of 4.6%. The company explicitly characterized this as a "challenging market" for these categories. However, the outlook is not entirely bleak. The sports category, despite the overall decline, saw a notable 9.7% growth in its own right, largely attributed to the reintroduction of the Nike brand in the spring. This specific success story provides a roadmap for how Very intends to claw back market share in apparel and footwear in the coming year. Electricals saw a minor decline of 0.4%, reflecting a cautious consumer approach toward high-ticket, durable goods.

The Technological Transformation: The Skyscape Milestone

Perhaps the most significant long-term achievement of the 2026 financial year was the successful migration to the "Skyscape" platform. Described by CEO Robbie Feather as the group’s "biggest-ever technology transformation," this project was essential for modernizing the digital infrastructure.

By the end of the financial year, more than 95% of customer traffic had migrated to the new system, with full completion occurring shortly thereafter. This shift is more than just an IT upgrade; it is a strategic necessity. The platform is designed to be highly agile, allowing the company to react in real-time to market trends, inventory fluctuations, and shifting customer expectations. In an era where digital latency and site performance directly correlate with conversion rates, the Skyscape migration is a foundational asset for the next phase of the group’s growth.

Official Responses and Strategic Vision

Robbie Feather, CEO of The Very Group, has been vocal about the importance of the company’s "unique proposition." By combining retail with flexible payment methods, Very occupies a specific niche that serves the needs of modern families who require financial predictability alongside quality goods.

"FY26 has been another year of strong progress and significant milestones for The Very Group," Feather stated. "Against a challenging market backdrop, we delivered the best earnings performance in the Group’s history while continuing to strengthen our unique proposition."

Feather also highlighted the human element of the success, noting that the group achieved its "highest-ever customer satisfaction score." This indicates that while the technology and the product mix are vital, the company’s focus on the "families we serve" remains the core driver of its brand loyalty.

Looking toward 2027, the company is not resting on its laurels. The strategy for the coming year includes:

1. Broadening Brand Appeal: Following the addition of over 80 brands in FY26—including Estée Lauder, Salomon, and DUSK—the group aims to continue its partnership strategy to attract new demographics.
2. Logistical Innovation: The InPost partnership, providing access to approximately 15,000 lockers nationwide, is expected to enhance the convenience factor for shoppers, a crucial metric in modern e-commerce.
3. Refining the Credit Proposition: As the group looks to balance its retail and credit offerings, it intends to build a more robust, sustainable, and consumer-friendly financial ecosystem.

Implications for the Retail Landscape

The results from The Very Group serve as a bellwether for the wider UK e-commerce sector. The ability to maintain stable revenue in a flat market, while simultaneously growing EBITDA, suggests that the "digital department store" model remains viable, provided it is supported by technological agility and a diverse product range.

The decline in fashion and sports, contrasted with the success in home and beauty, indicates that consumers are becoming increasingly selective. They are prioritizing home-centric purchases and small, affordable indulgences over wardrobe refreshes. Furthermore, the success of the Nike re-launch demonstrates that brand equity remains a powerful lever for growth, even in a difficult market.

For competitors, the lesson of FY26 is clear: the battle for the consumer is no longer just about price. It is about the synthesis of a frictionless digital experience (via platforms like Skyscape), convenient delivery and returns infrastructure (like the InPost lockers), and a flexible financial model that meets the specific, nuanced needs of the modern family.

As The Very Group moves into 2027, the emphasis on "building an even stronger retail and credit proposition" suggests that the company is confident in its ability to adapt. With a record-breaking year behind them and a fully modernized digital platform at their disposal, the company is well-positioned to maintain its momentum, provided it can continue to navigate the headwinds of a cautious consumer base and an increasingly competitive digital marketplace.

Ultimately, the story of Very in FY26 is one of institutional maturity. By focusing on what it does best—serving families with a hybrid retail-credit model—and investing heavily in the technology required to deliver that service at scale, The Very Group has proven that it is not merely surviving the challenges of the current retail climate; it is actively shaping its own path to long-term profitability.