Higher costs push Virgin Wines into the red despite sales spark

(Sharecast News) - Virgin Wines was pushed into the red amid higher costs and a "challenging" consumer environment, the direct-to-consumer retailer confirmed on Wednesday.

The AIM-listed wine specialist saw revenues rise 3.4% in the year to 3 July to £61m, the first growth after three years of flat like-for-like sales. It also flagged "significant" market share gains, including a 41% increase in customers acquired across the business.

However, higher costs pushed Virgin Wines into the red, with pre-tax losses coming at £1.5m. The year previously, pre-tax profits were £1.6m.

Chief executive Jay Wright acknowledged that the consumer environment was "challenging" and that the sector was facing "significant" cost pressures. But he insisted it had otherwise been an "excellent" year for the business, with momentum continuing into the current year, including a 4.5% jump in first-quarter revenues.

He said: "Looking ahead, we've entered the 2027 full year with real momentum and remain confident in our medium-term strategy

"With a loyal and growing customer base, increasing progress across our key growth pillars and a strong, debt-free balance sheet, we believe we are well positioned to continue taking market share and deliver further growth in the 2027 full year."

As at noon BST, shares in Virgin Wines were up 1% at 25.8p.

Set up in 2000 by the Virgin Group, Virgin Wines was eventually acquired by management - including Wright - in 2013 before listing on AIM five years ago. The majority of revenues are derived from its WineBank subscription scheme.