Naked Wines has increased its full-year adjusted EBIT after a solid trading period in the quarter ending December 26.

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Naked Wines says it expects to spend between £20m and £24m on new customer investment this year, 40% below FY22 levels

The retailer forecasts EBIT to be between £13m and £17m, up from previous guidance of £9m to £13m.

The company said a solid trading performance in the third quarter and “improved repeat customer contribution margin year on year” were key drivers to improving its adjusted EBIT outlook.

Revenue was flat during this period and sales in the UK and Australia fell by 1% and 3% respectively, but sales in the US grew by 2%.

New customers dropped by 27% and Naked Wines said it expects to spend between £20m and £24m on new customer investment this year, which is 40% below financial year 2022 levels.

As a result, the company forecasts it will see a “modest decline in revenue” in financial year 2024.

Group chief executive Nick Devlin said: “Against a challenging market environment, the robust performance of our repeat customers reflects the enduring appeal of Naked’s core proposition combined with strong operational performance – with increased throughput from our investment in warehouse automation supporting an especially strong peak in the UK.

“Costs have remained tightly controlled with [selling, general and administrative] spend outlook at the bottom end of our guidance. Combining this with repeat contribution profit at the top end of expectations, we now expect FY23 adjusted EBIT to be in the range of £13 to £17m (previously £9m to £13m).”