Online retailer, Naked Wines, has reduced its half-year losses, despite a fall in sales.

The wine merchant posted a pre-tax loss of £5.6m for the 26 weeks to September 30 - an improvement on the £9.7m loss it reported last year, as reported by Retail Gazette.

Adjusted earnings before interest and taxes (EBIT) fell £5.3m to a loss of £3.1m in the six-month period, due to a £3.7m hit from inventory liquidation and associated costs, including a £2.5m increase to US stock provision and £1.2m of losses on disposal and other wine liquidation costs.

Sales were down 15% to £112.3m in the half, which Naked Wines said reflected a 12% reduction in active members.

Looking ahead, the retailer said early peak season trading has been 'solid' and it expects to deliver an adjusted EBIT excluding inventory liquidation of £3m to £8m. Sales for the full year are expected to be between £240m and £270m.

Naked Wines said it is now 'in a better position, both financially and strategically', with loyal and engaged members.