Shares of Naked Wines took a significant hit today following the company’s downward revision of its guidance, mainly due to a weaker-than-expected performance in the U.S. The online wine retailer’s CEO, Nick Devlin, will also be stepping down with immediate effect.
At 08:28 GMT, shares had plummeted by 27%, equating to a loss of 12.0 pence, bringing the share price down to 33.0 pence.
For fiscal 2024, Naked Wines now anticipates a revenue decline ranging from 12% to 16%, a stark contrast to the previous forecast of 8% to 12%. Furthermore, the company projects that its earnings before interest and taxes (EBIT) for the year ending April 3 will reach between £2 million and £6 million ($2.5 million and $7.4 million). This revised range is significantly lower than the earlier guidance range of £8 million to £12 million.
In the midst of these challenging times, CEO Nick Devlin will be leaving his position immediately. He will be temporarily replaced by Rowan Gormley, the company’s founder and Chair. The search for a permanent successor is currently underway. Before officially parting ways with the group, Devlin will continue to serve as the president of Naked Wines U.S. during the peak trading period.