Naked Wines PLC says full-year sales top expectations after strong US performance

LC () said sales in the year to March 29 came in ahead of guidance after strong performance in the US.

The online wine retailer posted sales growth of 68%, though it was forecast to surge 55-65%, with US revenue climbing 75% to over £150mln and now accounting for 45% of the total.

WATCH: Naked Wines grows US business by 75% in year end trading update

The AIM-listed firm said trading was driven by a significant increase in demand for its direct-to-consumer wine subscription model and from an accelerated shift to online shopping due to the pandemic.

Investment in new customers also came in 10% above guidance, at sustained higher payback than target.

Repeat customer contribution was 5% above forecasts and margins improved thanks to scaling up of operations.

The customer base, which Naked Wine calls ‘Active Angels’, soared 50% to 885,000, while the platform is now supplied by 235 independent winemakers.

Fixed costs were in line with expectations and the company said it has enough cash to fund operations in 2022.

“Whilst in some ways 2021 is as difficult to predict as 2020, I believe we have seen an enduring shift of demand online across multiple categories,” said chief executive Nick Devlin in a release.

“Ultimately whilst COVID has driven the trial of many online models, the long-term winners will be the businesses that offer customers a genuinely differentiated offer: I firmly believe Naked will be one of those long-term winners.”