Virgin Wines UK (LSE:VINO) shares have fallen 11.5%, to 29.65p, after the group trimmed its full-year revenue and profit forecasts.
The company now expects revenue of approximately £61 million for the year to 3 July, EBITDA of minus £200,000 and a pre-tax loss of £1.5 million, falling short of market expectations of £63.25 million revenue, £100,000 EBITDA and a pre-tax loss of £1 million.
Trading improved through the year, with first-quarter like-for-like sales down 4.5%, followed by growth of 5% in the second quarter and 8% in the third.
The group has signed a lease for a new Preston warehouse, with build and fit-out expected to complete in the financial year 2027, synergies and structural benefits arising from 2028, and exceptional operating costs of approximately £700,000 alongside increased capital expenditure of approximately £1.6 million.
Virgin Wines will exit its Bolton site by the end of February 2027.
Customer acquisition continued to gain momentum, with the group expecting over 40% year-on-year customer growth for the full year, Warehouse Wines revenue forecast up 90% year-on-year, and commercial partnerships including Moonpig and Ocado delivering double-digit revenue growth.
A new mobile app recorded approximately 13,000 downloads in April and May.
The group said it remains debt-free, will fund the new warehouse from existing cash reserves and that WineBank balances are ringfenced and not being used for capital expenditure.
Stockbroker stays bullish
Panmure Liberum, which rates VINO as a Buy, and today lifts its price target to 65p, claimed the online wine retailer is making steady progress on its medium‑term strategy.
The broker pointed to strong new customer acquisition (+40% year‑on‑year), rapid Warehouse Wines growth and double‑digit revenue from recent commercial partnerships as the backbone of a recovery.
Moreover, the broke said the market is not pricing in Vino's improving outlook. It expects potential catalysts will be the conversion of new customers into repeat purchasers, and delivery of synergies from the new Preston fulfilment centre, which management expects to begin benefiting results from FY28.
