Majestic Wine sees profits line with market views

Majestic Wine said its maintained focus on cost control means that FY profits are expected to be in line with market expectations.

Group sales for the 10-week Christmas trading period ending 2 January 2017 increased by 15.3% versus the same period in the prior year.

On an underlying basis the increase was 12.4%. The Group delivers about 30% of total annual sales during the Christmas trading period.

Majestic Retail had its biggest ever Christmas with like for like sales up 7.5%, on top of 7.3% like for like growth in Christmas last year. About 0.5% of the growth was one-off due to transfer of sales from closed stores.

The Group's Gross Margin percentage was around 1 percentage point lower, versus the same period in the prior year, due to a combination of accelerated acquisition of new customers and the need to remain competitive in a heavily discounted UK market still coming to terms with recent currency movements.