UK: Majestic Wine sees sales struggle in year so far
Majestic Wine will announce its full-year results in June
Majestic Wine has warned that it has had a tough start to 2014, with its fiscal full-year sales now expected to come in flat.
In a trading update earlier today (20 March), the UK drinks retailer admitted to having suffered from “challenging trading conditions” since the beginning of the calendar year. The warning comes after Majestic said earlier this year that like-for-like sales in the ten weeks to 6 January rose by 2.8%.
“Although the ten-week Christmas trading period was satisfactory,” the company said, “we have experienced challenging trading conditions since the start of the 2014 calendar year. With two weeks to go until our year-end, we now expect like-for-like sales to be flat for the financial year as a whole.” Profits before tax are also expected to come in in-line with fiscal 2012/13.
The company is scheduled to report its fiscal full-year results, to the end of March, on 16 June.
Majestic used the update to highlight its investment in “the necessary infrastructure enhancements to underpin our future growth plans”. Included in the spend is new office space, a larger distribution facility and an increase in the size of the sales team.
“These investments are necessary to ensure that we can drive further growth, although the costs in the short term mean that the board now anticipates a flatter profit growth profile in the 2015 financial year,” Majestic said.
To read Majestic's full statement, click here.
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