Strong peak trading to boost Naked Wines’ year profitability
Naked Wines’ profitability is improving faster than expected, with strong peak and Christmas season trading likely to push its full year earnings (EBITDA) towards the top end of its existing guidance, according to an interim trading update today.
Although no exact figures were given, the online retailer said there had been success in its peak trading “across all markets”, with more than 70,000 special “Big Christmas Cases” sold between 1 November and start of December. It also noted a “disciplined approach” to costs – tighter cost control have been imposed over general and administration costs, costs of goods sold and variable costs, and customer marketing (acquisition investment).
“This builds towards the previously communicated strategy of a smaller but materially more profitable business; poised for a return to profitable growth, with Adjusted EBITDA* growing progressively over the Medium Term,” the statement said.
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The trading update comes less than ten days after Naked Wines reported a sharp improvement in profitability in its half-year statement. Although revenue had fallen to £89.5 million in the 26 weeks to from £112.3 million in HY25, it was still in line with the FY26 guidance, it said, and today’s update pinpoints this is likely to land towards the higher end of EBITDA.
In the half-year results, as gross profit margin increased to 19.5%, up from 16.9%, it also reported that it was continuing to “unwind excess inventory” and cut how much it spends on customer acquisition. Here, investment had fallen from£9.4 million to to £3.9 million, with the cost of customer acquisition dropping from £78 to £69.
Naked Wines will issue a more detailed update in mid-January 2026, to report on the key Christmas period, which can reduce discounting pressure after Christmas, and set the tone for the rest of the second half of the year.
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