Naked Wines sales smash £340m as US business booms

Naked Wines
Naked Wines said it will continue to increase its focus on its US segment
// Naked Wines sales rise 68% in the year to March
// The online wine retailer saw a 53% rise in customer numbers
// It comes after a £50m investment in new customers compared to £23.5m last year

Naked Wines has reported a 68 per cent rise in sales to £340.2 million after a surge in customers as well as a strong performance in the US.

With pubs and bars shut for most of the year, the online wine retailer witnessed a 53 per cent rise in customer numbers in the year to March 29.

It comes after a £50 million investment in new customers compared to £23.5 million last year.

READ MORE: Naked Wines names new chairman

However, the increase in investment saw Naked Wines post a pre-tax annual loss of £10.7 million.

Naked Wines said it will continue to increase its focus on its US segment, which saw a 78 per cent surge in sales, as it looks to spend cash on new customers, inventory purchases and “strategic priorities”.

The company said it is now the largest direct to consumer wine merchant in the US and has managed to scale its operations in response to growing demand.

“It is clear to us that the pandemic has served to underscore the value of our business model in connecting winemakers and consumers directly and proven the opportunity before us,” Naked Wines chief executive Nick Devlin said.

“As we head into FY22, we are focussed on investing in the opportunity and executing against our strategic initiatives, which are to invest in new customers at attractive payback, to enhance the customer proposition to improve LTV, to leverage our scale to enhance value creation, and iv) to broaden and enhance our go-to-market strategy, driving growth.”

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