Naked Wines has cut its sales guidance for the year after a slowdown in customer demand and has launched an overhaul of its board and spending plans.

The online wine retailer said it will prioritise profitability over sales growth to make the firm more financially resilient.

It came as the company said it now expects revenues to fall by between 4 per cent and 9 per cent over the current financial year, downgrading from previous targets of between 4 per cent growth and a 4 per cent decline.

Nick Devlin, Naked Wines chief executive, said: “We recognise that in pursuit of rapid growth we have made mistakes.

“Whilst the business today remains materially bigger than pre-pandemic, in 2021 we bought inventory and added to our cost base in anticipation of sustained faster growth which has not been delivered; today we are taking steps to reset our cost base and unwind inventory levels.”

“We commit to not only resolve these challenges but also to ensure they are not repeated.

“While the operating environment remains challenging, with low consumer confidence and high levels of supply-chain inflation, we have taken steps to reconfigure Naked appropriately.”

Naked Wines cuts sales guidance for the year after a slowdown in customer demand