Naked Wines, the London-listed online wine retailer, has reported a 10% decline in sales for the third quarter. However, this is in line with the company’s expectations and represents an improvement compared to the 18% fall experienced in the first half of the year.
The decrease in sales can be attributed to a smaller repeat customer base, as the company invested less in customer recruitment in the previous year. Nevertheless, Naked Wines is starting to observe signs of new customer acquisition.
During the quarter ending on December 31, the average repeat customer base was 12% smaller. However, sales per repeat customer increased by 2%.
Naked Wines expects its adjusted earnings before interest and taxes for the third quarter to range between £3 million and £5 million. This aligns with the company’s previous predictions.
To counter the decline in sales, Naked Wines has taken measures to save costs. It aims to achieve savings of £37 million to £40 million by fiscal year 2024, with an additional £30 million to £33 million in fiscal year 2025.
As part of these cost-saving efforts, the company will be reducing its workforce; however, the exact number of employees affected has not been disclosed.