Naked Wines has today slashed its annual revenue and profit forecasts and said CEO Nick Devlin will leave the online wine seller as it bleeds customers in the US, sending its shares plunging over 20%.
Revenue for the year is expected to fall between 12% and 16% from year-ago levels, while adjusted operating profit is expected to come in between £2m and £6m, the London-listed firm said.
The group had previously forecast an 8-12% fall in revenue and profit of between £8m and £12m for the full year.
"Current trading in the US has fallen well behind, both in terms of sales and margin," said founder-chairman Rowan Gormley, who will take on the role of executive chairman until the appointment of a new CEO.
Naked Wines operates across the US, the UK and Australia, with US accounting for roughly 48% of total revenue. In the first-half, sales in the US fell by 20%.
"My view is that this shortfall is largely to do with execution, which in turn is largely due to Nick Devlin splitting his time across both the role of CEO and US president," Gormley said.
Devlin, who will step down as CEO with immediate effect, will continue as president of Naked Wines USA during the trading season, the company said.
