Is Naked Wines an undervalued gem?

Naked Wines (WINE:50p), an online wine retailer with more than 700,000 subscription customers in the US, UK and Australia, has reported a solid trading update for the peak trading season.

Although revenue declined 8.9 per cent in constant currencies in the final quarter of 2024, this represented a marked improvement on the 14.9 per cent decline reported in the previous six months. Importantly, member trends continue to improve as retention rates amongst the core membership edged up from 79 to 81 per cent. This reflects initiatives such as relaunching wine ratings, redirecting marketing investment into more efficient channels such as earned media and using PR and content creators for cost effective brand reach, then converting new members via Meta, member referrals and brand search.