Naked Wines has said it is in “a better position, both financially and strategically” as it revealed it had shrunk its half-year losses despite weaker sales.
The online wine merchant posted a pre-tax loss of £5.6m in the 26 weeks to 30 September, down from the £9.7m loss it reported last year, as it continued to make progress against its turnaround plan.
Adjusted EBIT dropped £5.3m to a loss of £3.1m in the half, due to a £3.7m hit from inventory liquidation and associated costs that include a £2.5m increase to the US stock provision and £1.2m of losses on disposal and other wine liquidation costs.
Sales dropped 15% to £112.3m in the half, which it said reflected the 12% drop in active members.
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Looking ahead, Naked Wines said the early peak season trading has been “solid” and that it expects to deliver an adjusted EBIT excluding inventory liquidation of between £3m and £8m. Sales for the full year are forecast to fall in the range of £240m and £270m.
The retailer’s chief executive Rodrigo Maza said: “Naked Wines is in a better position, both financially and strategically.
“We now have robust financial foundations, and our members remain loyal and engaged.
“Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period.”
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