In both the UK and US, membership continues to decline for Naked Wines. However, the company says it sees encouraging signs in its subscription model, particularly in Australia, where it has returned to growth after two years of decline.
Expanding on the decline, Naked Wines’ chief financial officer Dominic Neary said it was a natural consequence of the pandemic and that recent membership has been more consistent. “Data from the last few years shows that our underlying non-pandemic acquired closing members have been broadly stable,” he said.
“The majority of the decline in members during this time is the result of the huge scale of customer acquisition during FY21 and FY22; this is simply the mathematics of customer retention.” Customer acquisition was 2.7x normal acquisition levels during this period.
Customer acquisition to improve
Neary said Naked Wines would continue to make improvements in customer acquisition but that core members – those who have been with the company for more than two years – continue to be profitable, generating in excess of £40m in repeat customer contribution in the full year 2025.
The company has identified up to £3m in initiative-based investment, focused on engagement tools such as customer guarantees and retention programs, which Neary said should support a return to historic retention levels.
Losses narrow
The news came as the company announced its full-year results for the year ending 31 March, 2025, which were in line with expectations. Total revenue decreased by 14% to £250.2m compared to last year. The company reported a loss before tax of £4.9m compared to a loss of £16.3m in the previous year.
Naked Wines operates a crowd-funding subscription model where its Angels (members) pay in £25 a month to get exclusive access and savings on a wide range of wines. It also operates a Wine Genie service, a curated service where a case of wines to delivered regularly to customers on a more traditional subscription basis with Angel discounts.
Earlier this year Naked Wines laid out a new strategy focused on improving liquidity, strengthening its profitable core and returning to growth. This includes a focus on high-value Angels.
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