Virgin Wines has reported a strong Christmas trading performance, with revenue rising 5% year on year over the seven weeks to 26 December 2025, supported by a sharp uplift in customer acquisition.

The AIM-listed direct-to-consumer wine retailer said customer acquisition increased by 40% over the festive period, helping return the overall customer base to growth while also significantly outperforming the wider online drinks market.

By the beginning of January, group revenue for the six months prior had risen 2% to £34.7m, while drinks ecommerce more broadly declined by 11% over the same period.

Overall, the strong Christmas performance was a welcome boost for the company, which said progress is being made across all four pillars of its growth strategy. Customer acquisition rose year on year while maintaining cost per acquisition at “broadly the same unit cost as the previous year”, which the group said reflects a disciplined approach to investment.

The business also highlighted growth in its commercial channel via partnerships such as Moonpig, which continued to deliver double-digit growth. Meanwhile, its value-focused Warehouse Wines proposition delivered revenue growth of 92% year on year, albeit from a low base.

Elsewhere, Virgin Wines said development of its mobile app remains on track for release this quarter, with the platform expected to support improved customer engagement.

Commenting on the update, chief executive Jay Wright said: “We are delighted to report a positive first-half performance in which we have delivered meaningful market share gains enabled by our growth strategy. It was particularly encouraging to see 5% year-on-year growth over the key Christmas trading period, driven by a 40% increase in customer acquisition, the continued growth of our Commercial channel and a 92% increase in revenue year-on-year from our Warehouse Wines brand.”

Looking ahead, the board said it remains confident that full-year performance will be in line with current market expectations, supported by continued growth across key performance indicators and momentum in customer recruitment. It also has the benefit of being debt free. Despite continued inflationary pressures and duty increases, the group had gross cash worth £17.9m and net cash of £10.6m at the end of the period.