Naked Wines reports revenues up as lockdowns raise demand
Naked Wines has said revenues for the full-year 2020 will be in excess of £200 million due to increased demand from both new and repeat customers.
In a statement Naked Wines said it had seen “higher levels of demand from both new and repeat customers” in all of its markets, since social distancing measures were put in place.
The online wine retailer said it expects its investment for the year to be between the £20 million to £25 million range and it said that as of March 30, it holds cash reserves £50 million and has no debt, with plans to invest “aggressively in new customer recruitment” through the year.
Naked Wines also noted that future trading dynamics “remain very uncertain”, and said it was too early to provide updated guidance.
Nick Devlin, group chief executive, said: “During this unprecedented time, our absolute priority is the safety and wellbeing of our staff, customers, suppliers and winemakers and we have implemented necessary safeguarding measures in line with government advice in each of our markets.
“I am deeply proud of the way our teams have responded to the challenge of adapting to a new way of working in light of COVID-19 and their commitment to serving our customers. To the extent it’s safe to do so we are working hard to continue to connect wine drinkers with world class independent winemakers and bring a moment of normality and enjoyment into their homes without necessitating a visit to a store.
“In the short term, the introduction of social distancing has accelerated the shift in consumer buying behaviour towards online, leading to increased demand from both new and existing customers across all our markets. In the US, especially, I believe the current period could serve as an inflection point for the growth rate of the online category, and as the largest direct to consumer player in the US market we are well positioned as customers move online.
“Over the medium-term, Covid-19 and its economic impact clearly creates uncertainty. However, Naked, with its advantaged consumer proposition and strong balance sheet is well placed to meet the challenges of a changing consumer environment.”