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Majestic Wine cheered by Xmas sales performance in tough market
Majestic Wine said it had put in a "robust" performance in tough Christmas trading conditions with revenues up 3.2% in the 10 weeks to January 1.
Underlying revenue was up 4.1%. The group delivers around 30% of total annual sales during the Christmas trading period, Majestic said in a trading update..
Retail sales were up 1.3% on a like-for-like basis, well below 2016's rise of 6.2%. In the commerical division and Lay & Wheeler fine wine merchants sales were down 4.6% and 4.7% respectively.
There was strong sales growth at Majestic's Naked Wines - where it funds independent winemakers - with Australia up 33%, the US 13% and UK 7.4%.
Majestic said that subject to continued satisfactory trading, it remained on track to achieve current market expectations and to accelerate sales growth in the medium term by increasing investment in new customer acquisition.
Chief executive Rowan Gormley said the company was on track to achieve its £500m sales goal by 2019, deliver market expectations for the current financial year, and on track to accelerate investment in new customers, winemakers and "more fantastic wines".
"The fact that we have been able to grow sales and maintain margins shows that our winning formula of fabulous customer service from delightful people and delicious wines at fair prices works even when times are tough," he said.
Majestic Wine shares were 10.5p lower at 448.5p at 1122 GMT.