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Naked Wines announces £15m loss after delaying results

Published:  20 September, 2023

Yesterday (19 September), online wine retailer Naked Wines announced a £15m loss in the year to 3 April. 

Following a delay in the release of the annual results, Naked Wines chairman and founder, Rowan Gormley, was reappointed on 4 July – the announcement coincided with a 10% fall in the company’s share price.

Since April, revenues in the most recent quarter are down 18% compared to the same period last year, while sales to new customers are down by almost 50%. Naked Wines predicts a decline in sales of between 8% and 12% for the current financial year.

Addressing shareholders on Tuesday 19 September, Gormley said: “The whole board of Naked Wines regret that your support and patience as shareholders, winemakers, angels and employees have not been rewarded. We are all determined to remedy that.

“I am pleased to report that the management team have recognised the challenges very clearly and acknowledge where different actions could have been taken and are acting decisively to steer Naked through this period. They are highly motivated and determined to ensure that all stakeholders are rewarded for their support.”

Gormley added: “We do not have a general sales problem... what we do have is a new customer acquisition problem.”

The news comes in stark contrast to booming sales during the pandemic, where demand even crashed Naked’s website in the run-up to Christmas 2021. At its height in 2021, the company’s share price was 870p, it has since plummeted to 64.4p, down 90%. 

As restrictions eased and inflation soared, Naked struggled following a major slowdown in online orders. The company also spent significant sums on marketing and expanding its wine stock following its boost in sales during lockdown.

In October 2022, Naked announced plans to reduce costs, stock and advertising spend in what it described as a “pivot to profit”. As a result, Naked cut 6% of its workforce, making 30 people redundant to create a “leaner and more focused organisation”.

As part of yesterday’s announcement, Naked confirmed that it would be able to continue trading even if sales fell by 17%. However, this would be dependent on stable trading, cost-cutting initiatives and cooperation with suppliers all coming to pass.