Majestic Wine PLC, the UK's largest wine specialist and owner of Naked Wines, has today announced a trading update for the 10 weeks of Christmas Trading from 27 October 2015 to 4 January 2016. The company delivered around 30% of total sales during this period.
Total sales growth was 42.6% compared to the same period last year, boosted by the acquisition of Naked Wines. On a pro forma basis over the period, group sales were up 12.2%.
Majestic Retail's like-for-like sales grew by 7.3% in the period (versus a decline of 1.7% in comparator period), supported by the previously indicated strategic investments to reinvigorate sales growth with a new and simplified pricing policy, and improved customer experience in store and on-line.
As expected these investments resulted in higher costs and a slightly lower percentage gross margin during the period.
Rowan Gormley, Chief Executive, (pictured) commented, “This is an encouraging result. Majestic Commercial and Naked Wines continued to grow strongly, and I am particularly heartened to see the Majestic Retail business grow as the impact of our better pricing, better service and better looking stores starts to take effect. However there is still much to do.
'We are only three months into our three year plan and although this performance is pleasing it is too early to call it a trend.
'We remain focused on our values of looking after our brilliant teams and suppliers and thank them for their support during the initial steps of transforming Majestic into a truly fantastic business.”