The boss of Naked Wines has said that the firm has "made mistakes" as it downgrades its expected revenue.

It said it now expects revenues to fall by between 4pc and 9pc over the current financial year, downgrading from previous targets of between 4pc growth and a 4pc decline.

The Norwich company said it will prioritise profitability over sales growth to make the firm more financially resilient.

This move comes after the online retailer faced a challenging few months, which saw its non-executive director quit last month after just two weeks into the job.

Naked Wines has seen a slowdown in customer demand and has launched an overhaul of its board and spending plans.

Nick Devlin, chief executive at Naked Wines, said: “We recognise that in pursuit of rapid growth we have made mistakes.

“While the business today remains materially bigger than pre-pandemic, in 2021 we bought inventory and added to our cost base in anticipation of sustained faster growth which has not been delivered; today we are taking steps to reset our cost base and unwind inventory levels.

“We commit to not only resolve these challenges but also to ensure they are not repeated.

“While the operating environment remains challenging, with low consumer confidence and high levels of supply-chain inflation, we have taken steps to reconfigure Naked appropriately.”