In a letter to shareholders, the chairman of Naked Wines apologised after the online booze supplier reported disappointing full year results.
In a trading update the British wine supplier said new customer investment dropped by 48 per cent, while repeat customer contribution stayed roughly flat.
Shares dropped ten per cent on Tuesday morning.
New sales dropped to £26.9m, down from £34m in 2022 and Naked Wines made a loss of £15m in 2023, compared to a profit of £2.9m last year.
“Firstly, an apology,” siad Chairman Rowan Gormley in a statement.
“The whole Board of Naked Wines regret that your support and patience as shareholders, winemakers, Angels and employees has not been rewarded. We are all determined to remedy that.”
Naked Wines has struggled to burn through excess stock and sustained high inflation in key markets impacting their supply chain costs.
The chief executive Nick Devlin said the focus is now on “delivering profitable growth”.
“We recognise that the environment is likely to remain tough and are configuring the business to be profitable and cash generative despite challenging conditions.
“A leaner and more focussed Naked will be best placed to deliver for our customers and winemakers. I believe we can emerge from these challenges a stronger business,” he added in a statement to markets this morning.
Last autumn Naked Wines announced a shake up of its business in a bid to cut costs, including 30 redundancies.