Naked Wines H1 sales fall 20% as losses widen
The results come as the retailer’s revenues dropped in all markets, which it attributed to a reduction in repeat customer sales
Naked Wines total revenues fell by 20% to £132.3m during the six months ended 2 October, while its pre-tax losses widened to £9.7m from £200k a year earlier.
The results come as the retailer’s revenues dropped in all markets, which it attributed to a reduction in repeat customer sales.
However, the group maintained that it expects to deliver between £40m to £50m cash inflow over the next 18 months from inventory optimisation.
Rowan Gormley, executive chairman of Naked Wines, said: “We are moving towards a period of sustained cash generation. We have taken out £3m of cost with £10m more to come and expect to generate £40-50m of cash from inventory over the next 18 months.
“In addition, we have made good progress with testing an enhanced customer proposition to restore us to growth. I want to thank our people, our winemakers and our customers for their support and reiterate our determination to make sure that they are rewarded for it.”