Majestic Wine posts 6.3% sales growth

Majestic Wine

Majestic Wine posted a 6.3% growth in sales for the 10 weeks to December 31.

According to the company’s Christmas trading update, group sales were up 6.8%, and 6.3% on an underlying basis.

This proved a significant improvement from the 3.2% and 4.1% underlying reported during the same period the year before.

The specialist wine retailer attributed the growth to strong performances across its Naked Wines Majestic Retail locations, despite a ‘challenging market backdrop’.

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Consequently, the group said it continued to note ‘difficult trading conditions amidst economic uncertainty and weak consumer confidence’ in the UK.

Rowan Gormley, Group Chief Executive, commented on the results:

“The team have worked really hard over the Christmas trading period and have delivered sales growth across all our business units.

As we said in November, consumer behaviour is changing and we’re seeing a revolution in retail. We think there will be winners and losers, and we believe we have what it takes to be one of the winners. We are uniquely placed, with the people, data and skills in place to succeed despite the headwinds we are seeing.

While trading has been challenging over the Christmas period, the trends we reported in November are the same (namely strong growth in our overseas markets and our digital propositions but headwinds for our UK Retail stores).”

Shares in Majestic Wine (LON:WINE) are currently +2.40% as of 12:23PM (GMT).