Naked Wines has reported narrowing losses in its full-year results spurred by a “sharp acceleration” in sales since the outbreak of the coronavirus pandemic in the West.
The online wine retailer reported that its pre-tax losses had shrunk 46% to £5.4m in the 52 weeks to March 30, bolstered by a 14% rise in revenue to £203m year on year.
The etailer’s growth, which was up 20% in the US during the period and marginally ahead of market expectations overall, was aided by demand amid lockdown.
Naked Wines said sales were bolstered by “Covid acceleration in final weeks of the year” and that sales have soared 81% in the first two months of its current financial year.
The online retailer’s repeat customer contribution also rose 15% during the period to £45.7m, while sales retention rose 83% as the business increased its investment in new customers by 20% to £22.9m.
Chief executive Nick Devlin said: “I’m delighted to report a strong set of results to conclude a year of transition for Naked Wines. We are ending the year with great momentum behind our growth plans and a simplified, well-capitalised online pureplay model that is ideally suited to the current climate.
“I would like to thank all our colleagues for their determination, flexibility and commitment to our customers throughout the year, but especially over the past three months. I’m proud of the way they have allowed Naked to respond to the challenges posed initially by Covid-19 and subsequently by the sharp acceleration in growth we have seen since mid-March.
“While predictions are harder than ever this year, I am excited about our plans for growth and confident that the mission of Naked to connect everyday wine drinkers to the world’s best winemakers is more relevant than ever.
“I believe the enduring impact of Covid-19 will be to accelerate trends towards direct online models in categories like wine and that Naked is well positioned to deliver the combination of quality, value and community customers are looking for.”
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