Majestic Wine suffered a 25.5 per cent drop in first-half pre-tax profits after champagne sales slumped as corporate customers slashed expenditure.
In the six months ending September 29, total sales rose 3.4 per cent to£94.1 million with UK sales up 4.7 per cent to£88.8 million. Like-for-like sales in the UK were down 2.1 per cent, worsening to 4.7 per cent for the five weeks to November 3.
Majestic chief executive Steve Lewis said that while trading is tough, the retailer has maintained its share of the UK wine market. “We have a good brand, are well capitalised and have a loyal and affluent customer base,” he said.
Investec analyst David Jeary is reviewing his forecasts for Majestic but expects a significant decrease in the consensus of£16 million pre-tax profit for the full year.
However, he said: “While current market conditions are obviously difficult and promotional, we believe Majestic remains one of the more resilient specialist wine retailers and that its business model will support further organic growth over the medium term.”
Majestic chief executive Steve Lewis said that while trading is tough, the retailer has maintained its share of the UK wine market. “We have a good brand, are well capitalised and have a loyal and affluent customer base,” he said.
Investec analyst David Jeary is reviewing his forecasts for Majestic but expects a significant decrease in the consensus of£16 million pre-tax profit for the full year.
However, he said: “While current market conditions are obviously difficult and promotional, we believe Majestic remains one of the more resilient specialist wine retailers and that its business model will support further organic growth over the medium term.”
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