Naked Wines said that constant currency sales were down over peak trading but are steadily improving, despite its average repeat customer base shrinking by 12%.

Naked Wines screenshot

Online wine retailer Naked Wines

For the third quarter, Naked Wines constant currency sales were down 10% on the prior year, in line with expectations and an improvement on -18% in the first half of 2024. The retailer said its average repeat customer base was 12% smaller, while sales per repeat customer were 2% higher.

Third quarter adjusted EBIT is expected to be £3m to £5m, which Naked Wines said is consistent with expectations.

The online retailer said cost-saving actions had reduced its operating expenses by £7m over the period to between £30m and £33m in FY25.

Naked Wines had third-quarter inventory levels of £163m.

Executive chair Rowan Gormley said: “I’m delighted with how the team pulled together to deliver a well-executed peak trading season. As we saw at the half year, the reason sales are down on prior year is entirely due to a smaller repeat customer base reflecting lower investment in customer recruitment in the previous year.

“But for the first time, we are seeing signs of new customer acquisition coming back to life, which should support further improvement in the top-line trend. We have also seen a stabilisation in net cash levels year on year and continue to expect cash generation in the second half of FY25.”

Job losses across the board

Gormley continued: “Notwithstanding this, we have to recognise that we are a smaller company post-Covid and our cost base has to reflect this. We have therefore taken the painful but necessary decision to reduce SG&A costs by £7m per year, securing our profit potential.

“Sadly, this means that we will be losing a number of valued colleagues who have been informed of our plans. Reflecting this change across all levels of the organisation, we have decided to reduce the size of the board and would like to thank Melanie Allen for her service to the company as a non-executive director.

“I remain committed to building a leaner and stronger Naked as we continue to address the challenging revenue trends. I’d like to thank the team, our suppliers and our shareholders for their patience and support as we continue to drive these changes.”