Britain's Majestic Wine Plc said on Thursday its underlying full-year revenue rose 11.4 percent as sales expanded by more than a quarter at its U.S.-focused Naked Wines unit, despite a failed e-mail campaign earlier this year.
Full-year sales at Naked Wines, which was acquired in April 2015, surged 26.3 percent to 142.2 million pounds. U.S. sales for the unit rose by 28 percent.
Profit for the full year at Naked Wines rose to 48.2 million pounds, despite the previously reported failed direct marketing campaign hurting profit by 2 million pounds.
Under the direct mail campaign, the company sent mailers to new customers last year inviting them to support winemakers and in exchange get preferential prices.
"Profits could have been much higher but we increased our rate of investment..., a portion of which was badly spent on a failed Direct Mail campaign that will not be repeated," Majestic said.
The group's full-year sales came in at 461.1 million pounds.
Majestic Wine has 210 wine warehouses across Britain as well as two branches in France, while Naked Wines operates across the United States, Britain and Australia.
Other than Naked Wines, sales also grew at its specialist fine wine unit, Lay & Wheeler, by 36.2 percent.
However, full-year adjusted pretax profit fell to 12.9 million pounds from 15 million pounds a year ago, reflecting the investment in the business, it said.
Separately, the company said chairman Phil Wrigley will retire at the annual general meeting in August.
Greg Hodder, a non-executive director since October 2015, will be appointed as chairman-designate with immediate effect, Majestic Wine said.
(Reporting by Rahul B in Bengaluru; Editing by Sherry Jacob-Phillips and Adrian Croft)