Naked Wines posts £159m revenue as it stockpiles booze ahead of Christmas

Naked Wines
The company said it was holding stock worth £127 million
// Naked Wines increased stock levels in the 26 weeks to September 27
// Naked Wines returned to profit on an adjusted EBIT basis
// Revenues rose 6% year on year to £159.3m on a constant currency basis

Naked Wines has recorded its “largest holiday season” to date as it increased its stock levels.

The online wine retailer reported a pre-tax profit of £1.3 million in the 26 weeks to September 27, compared with a loss of £8.9 million during the same period last year.

Naked Wines also returned to profit on an adjusted EBIT basis, registering earnings of £1.2 million compared with a £3.2 million loss in the first half of last year.

READ MORE: Naked Wines sales smash £340m as US business booms

The retailer’s revenues rose six per cent year on year to £159.3 million on a constant currency basis.

It attributed the increase to strong sales by loyal customers, although it admitted sales to new customers declined due to a “tough comparison” last year when lockdown restrictions drove shoppers to buy online.

Naked Wines lowered its full-year sales guidance to £340 million to £355 million, compared with the previous range of £355 million to £375 million.

The overall number of customers signing up for Naked Wine’s subscription services jumped 25 per cent to 947,000 compared with the same period last year.

The company said it was holding stock worth £127 million – a 50 per cent uplift on the £85 million of product it had in its warehouses in September last year.

Naked Wines said it was “mindful of the challenges in restoring availability over the past 12 months and continued supply chain disruption”.

It said it planned to maintain higher stock levels “over the medium term” in order to “preserve availability for customers and ensure we do not constrain our growth potential”.

“I’m delighted by the progress we have made so far this year in further strengthening our winemaker line-up and customer proposition,” Naked Wines chief executive Nick Devlin said.

“I’d like to thank all our teams for their hard work in a challenging supply environment for ensuring we are well stocked and prepared for what we anticipate to be a record holiday season.”

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