Online wine retailer Naked Wines is facing a difficult future following a dramatic fall in sales revenue.
The UK public company has reported a £15 million annual loss for the 2022-23 financial year.
Naked Wines founder Rowan Gormley apologised to shareholders for the disappointing results, according to a report on Yahoo.
“Firstly, an apology,” he said. “We do not have a general sales problem… what we do have is a new customer acquisition problem.”
A lot of Australian winemakers sell wine through Naked Wines which claims to have more than 100,000 ‘Angels’ members who pay a monthly fee for access to the best deals.
The Wine of Show at the Barossa Wine Show – Red by Caroline Dunn 2022 Mataro – is available exclusively through Naked Wines.
Naked Wines CEO Nick Devlin said, “The trading environment is tough, but Naked remains highly resilient.
“We have taken decisive action and have met the key goals in our ‘pivot to profit’ strategy.
“Our focus now is on delivering profitable growth.
“We recognise that the environment is likely to remain tough and are configuring the business to be profitable and cash generative despite challenging conditions.
“A leaner and more focused Naked will be best placed to deliver for our customers and winemakers.
“I believe we can emerge from these challenges a stronger business.”
Naked Wines, established in 2008, says FY24 has started off slower than expected with Q1 revenue down 18 percent on last year.
“With revenue below our initial plan, we are marginally behind our destocking plans but have taken steps to further reduce future purchase commitments while continuing to manage costs tightly,” the company says.
WBM has seen documentation from the company showing it has 12 months worth of stock on hand.
Part of Naked Wines’ mission is to “change the way the whole wine industry works for the better”.
“We have a clear and compelling mission: to disrupt the wine industry for the benefit of customers, winemakers and our people.”