Naked Wines PLC (AIM:WINE, OTCQX:NWINF) said it intends to run with higher stock levels going forward to make sure it can satisfy customer demand during the current supply chain disruptions.
A host of retailers have warned about potential issues this Christmas, but Nick Devlin, chief executive, said inventory is now £127mln against £85mln a year ago, and that it had built up stocks ahead of what expected will be its biggest ever festive season.
Given the issues with supplies generally, it intends to keep stocks high going forward to maintain availability for customers, Devlin added.
The online wine retailer announced a half-year profit in the 26 weeks to end September of £1.3mln against a loss of £8.9mln last time, with cash at the period end of £57.1mln.
Sales also continued to move forward even compared to the surge last year due to a Coronavirus (COVID-19)-lockdown boost.
Revenues in the half-year rose 1% to £159.3mln but were 82% above the comparable figure pre-the pandemic.
The wine specialist added that customer//member numbers had jumped 25% over the half-year and now stand at 947,000.
Strong repeat sales had driven the sales improvement, it said, especially in the US.
Repeat customer profits rose 10% to £41.3mln driven by a 21% increase in repeat customer sales on a constant currency basis
This had helped to offset a drop-off in new customer sales compared to the very strong first half of 2021 when Naked Wines got the full benefit of the COVID-19 lockdown boost.
For the current year, Naked Wines now expects sales between £340-375mln, compared to previous guidance of £355-375mln, which would represent 2-7% growth at constant currencies.
Investment in new customers is expected to be £35-45mln against previous guidance of £40-50mln with the repeat customer contribution forecast unchanged at between £85-90mln.