Naked Wines to meet expectations as sales rise

Naked Wines has revealed its full-year results are set to meet its expectations after strong customer retention saw its sales increase 5% YOY.   

In the update for the fiscal year ended 28 March 2022, it added that sales on a two-year basis increased 77% constant currency vs continuing operations in FY20 (72%).

It comes as its sales retention beat previous expectations at 80% compared with a guidance of 70-75%. In addition, it saw its customer base increase 9% YoY to 964k in FY22.

It advised that adjusted EBIT was in the “low-single digits” with year-end cash at approximately £40m and year-end inventory approximately £143m, up £66m compared with FY21.

CEO Nick Devin said: “Naked has built a platform as the world’s number one DTC wine business, connecting 964k customers to over 225 world class winemakers. Our unique model offers a win for both winemakers and consumers and is backed by attractive and well-proven unit economics. 

“Our results reflect the hard work and high-quality execution of our teams around the globe, and I am especially pleased to see the improvements to our customer experience and product range reflected in sustained retention rates above our expectations. I look forward to further outlining our plans for long-term growth at our full year results presentation in June.”

CFO Shawn Tabak added: “We delivered full year results in-line with our expectations highlighted by strong execution, expense control and positive EBIT. Our balance sheet remains sound; after a year of building back our inventory levels globally, we ended our fiscal year with cash of approximately £40m. 

“Overall I’m pleased that Naked delivered growth following our step change in scale in FY21, and we are well positioned to take advantage of our long-term growth opportunity in the USA.”