2019 Year in Review

In a nutshell:

It was a pivotal year. We made the difficult yet strategically important decision to focus our capital and energies into delivering Naked’s potential:

  • It operates in much larger addressable markets 
  • It’s established in the fast growing US market
  • It’s digital 
  • It’s model is unique and defendable

We are excited to start this new chapter. We plan to maximise investment in new customers, grow faster and smarter.


As a group we delivered another year of strong progress. Group revenue of £506.1m was up 6.3% on last year and comfortably surpassed our target of £500m. Both overall revenues and repeat contribution at Naked continued to show strong growth as we increased investment to build a base of loyal and profitable customers. In a relatively resilient performance against a challenging backdrop, Retail gew revenue 1.5% but suffered reduced profitability.

Key drivers of performance in 2019:

  • Naked generated £6.0m more contribution from its repeat customers, who we call Angels. Our investment in new customer acquisition is proving to be effective as we are finding more customers and better customers who spend more with us each year
  • We increased our new customer investment by £5.0m to £19.1m to drive future growth. Naked is a subscription business so we have to continually acquire new customers to drive growth. On average our investments are generating pay back of 4x so it’s a great place to deploy capital 
  • We delivered 1.5% sales growth in Retail but this translated into a gross profit that was lower by £2.0m as we maintained competitive pricing and used tactical discounts to both retain existing and acquire new customers 
  • Our fixed costs investment in Naked and central items increased by £5.4m year on year

What will happen in 2020?

  • A simple business – one brand, one model, one team 
  • Profitable growth by going faster (max investment at target returns) and smarter (lower cost, higher efficiency)
  • On track for growth – at our current rate of investment we can double profitability, we think we can grow even faster