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Naked Wines’ revenue fell 15% in the first six months of the year as both new and old customers continued to ditch the online wine retailer.
Revenue fell to £112.3m broadly reflecting the 12% fall in active members over the last 12 months - about 100,000 people - although Naked Wines said the numbers were now improving.
The business also struggled to attract new customers with a 12% decline in new customer sales. More investment is now being put into greater acquisition.
Despite its struggles, Naked Wines maintained its turnaround plan was working. Its pre-tax losses narrowed to £5.6m from £9.7m the year before, and a reduction in inventories by a quarter helped boost its cash position.
“Naked Wines is in a better position, both financially and strategically,” said CEO Rodrigo Maza. “Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period.”
Naked Wines switched up its top team this year to try and turn the business around. Maza became CEO in April and quickly implemented a comprehensive strategic initiatives and testing programme.
Dominic Neary joined as CFO in November 2024. He was previously CFO at Mind Gym where he “helped return the business to profitability, whilst building scalable global operations”, Naked said.
Naked Wine’s share price has collapsed in recent years, down 93% since it peaked in August 2021.
Morning update
Tesco achieved its highest market share since December 2017 at 28.1% in November after its sales grew by 5.2% year-on-year, according to Kantar.
Sainsbury’s share increased by 0.3 percentage points to 15.9%, and spending through its tills was 4.7% higher than last year. The UK’s two biggest grocers now have a combined market share of 44%.
Lidl was the fastest growing bricks-and-mortar grocer, with sales up 6.6%. Its share climbed 0.3 percentage points to 7.7%.
Spending at Morrisons rose by 2.0%, and it now takes 8.6% of the market. Its average transaction value nudged up by 4.8% over the 12 weeks, helped by strong online sales.
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