Rowan Gormley, the boss of the fast-growing online wine business which recently split from the Majestic retail chain, is stepping down after the key Christmas trading period.
A statement from Naked Wines said its founder’s retirement from the company was the conclusion of an 18-month succession planning process. After “proving himself” in the Chief Operating Officer Role, Nick Devlin will take over as CEO.
The online subscription wine retailer stated that the move was “one of a number of important changes to enable Naked to enter the next chapter of growth” and fulfil its “significant potential” in the US.
As previously announced, John Walden has taken over from Greg Hodder as Chairman. Naked Wines has also created two new leadership roles to develop partnerships in the US and handle relations worldwide.
Walden commented: “On behalf of the Board I would like to thank Rowan for his leadership of Naked Wines over the past decade. He has built a company with huge growth potential and with the structure and resources in place to achieve that potential.
“I am confident that with Nick as CEO, and with his strong team of leaders and dedicated staff, we will deliver significant value for shareholders and customers alike.”
News of Gormley’s surprise exit comes on the same day that the company has posted widening losses.
Pre-tax losses hit £6.2m in six months to 30 September, worsening from £5.1m in the same period a year earlier. Adjusted EBIT losses more than doubled to £3.8m with the company blaming investment in attracting new customers.
However, underlying revenue grew 13.2% to £87.5m, with 17% growth in its main US market.
“We have built a solid foundation for growth,” Gormley said. “Naked Wines is now a pureplay online retailer, with a huge opportunity in the US wine market, and the resources to capitalise on that opportunity.
“Trading has been broadly on track in the first half. Naked’s US business is well up on the key measures of investment, payback and sales. Consistent with our disciplined approach to investment we will slow the rate of increase of investment in new customers in the second half, due to sluggish performance in the UK and Australian markets.”
Retail analyst Nick Bubb commented: “Today’s Naked Wines interims are overshadowed by the shock news that the well-regarded CEO Rowan Gormley is to step down after Christmas…Investors disappointed that this is happening so soon after the recent restructuring and the sale of Majestic Wine will be reassured, however, that the new CEO is going to be Nick Devlin, the COO and the architect of the success of Naked in the US.”
NAM Implications:
- We live in the ‘here & now’, in these unprecedented times.
- In other words, NAMs have to factor in the unexpected departure of Naked Wines founder, Rowan Gormley…
- …who appears to have established a solid growth strategy in terms of US and UK…
- …with a management structure to match.
- Time for competitors to reassess relative competitive appeal.
- See EMR Buying Mix Analysis to ease the process.
