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Naked Wines shares plunge as CEO quits and guidance slashed

Shares in online wine retailer Naked Wines (LSE: WINE) plunged over 35% on Tuesday after the company reduced its full-year revenue guidance due to ‘weaker than anticipated’ trading, particularly in the US market. The company …

Shares in online wine retailer Naked Wines (LSE: WINE) plunged over 35% on Tuesday after the company reduced its full-year revenue guidance due to ‘weaker than anticipated’ trading, particularly in the US market. The company also announced that Chief Executive Officer Nick Devlin has stepped down with immediate effect.

The FTSE AIM All-Share listed firm said it now predicts total sales for the financial year ending March 2023 will fall between 12% and 16%, from £354.0 million last year. It had previously forecast a drop of 8% to 12%.

Anticipated earnings before interest and tax have also been sharply reduced to a range of £2 million to £6 million, from a prior estimate of £8 million to £12 million. This compares to £16.3 million made in financial 2022.

Additionally, the online wine subscription service said revenue for the six months to September 2022 fell 17% year-on-year to £165.8 million.

In more bad news for investors, Naked Wines announced that CEO Nick Devlin has left his role with immediate effect. Founder and Chairman Rowan Gormley has taken over as interim executive chairman.

Naked Wines shares have plunged 78% in the last 12 months. The company appears to be losing ground in the US market in particular, prompting today’s sharp share price fall and change in leadership.

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