Naked Wines boss Rowan Gormley to step down as losses widen

Gormley, who founded Naked in 2008 and took charge of the enlarged business following its merger with Majestic Wine in 2015, will hand the reins to current chief operating officer Nick Devlin.

The retailer said the move was “one of a number of important changes to enable Naked to enter the next chapter of growth” and fulfil its “significant potential” in the US market.

Former Argos boss John Walden has already taken over as chair to spearhead its American aspirations.

To allow it to focus on those growth opportunities, Naked is in the process of selling its Majestic business to private equity firm Fortress. When complete, Majestic will be led by its former managing director John Colley, who has returned to the business as executive chair.

Details of the c-suite reshuffle at Naked came as it posted widening losses during the 26 weeks to September 30.

Reported EBIT losses for the continuing business widened to £5.7m from £4.7m a year ago. Including Majestic, the company swung to a £200,000 loss, compared with a £4.6m profit last year.

Pre-tax losses ballooned to £6.4m from £100,000 year on year.

But Naked insisted that trading was “broadly on track” as it hailed sales progress in its core target market of the US.

Revenues in its American business jumped 24% on a reported basis during the period. Total Naked sales were up 16% on a reported basis to £87.5m.

It said that a £2.3m increase in the amount spent on acquiring new customers drove its EBIT losses.

Outgoing boss Gormley said the amount spent on acquiring new customers would slow during the second half as a result of “sluggish performance” in the UK and Australia, where it is scaling back its investment.

Gormley added: “We have built a solid foundation for growth. Naked Wines is now a pureplay online retailer, with a huge opportunity in the US wine market, and the resources to capitalise on that opportunity.

“Trading has been broadly on track in the first half. Naked’s US business is well up on the key measures of investment, payback and sales.”

He said Naked would be “in excellent hands” under the leadership of Devlin, who has until now been charged solely with growing Naked in the US.

Chief executive designate Devlin added: “Naked has an exciting opportunity ahead to build on its community that connects over half a million wine-drinkers with over 200 of the world’s leading independent winemakers. I have been a part of that community for four years and overseen the rapid growth of the US operations for the past three.

“Naked has never been in better shape and we now have the internal capability, clarity of purpose and financial resources to take the business through its next chapter of growth. I am enormously excited to be given the opportunity to harness this platform and realise Naked’s full potential.”