Majestic Wine shares fall over 25 percent after profit warning
Shares in Majestic Wine plummeted by more than 25% this morning after the company issued a profit warning, highlighting disappointing performances for Naked Wines in the US and for Majestic’s Commercial division.
Majestic shares in sharp fall following profit warning
In an announcement to the London Stock Exchange, the business said trading conditions for its Commercial division had become ‘even more challenging’ in the first half of the current financial year.
As a result, sales were flat on the year and gross profit had declined, leading to an anticipated £2m drop in expected earnings for the year as a whole.
‘We need to find a better, more profitable approach for our Commercial operations as part of the group and, as a result, an internal review is under way,’ the company said.