Majestic Wine has forecast EBIT below expectations in 2017, but remains on track to hit three-year plan of £500m in sales by 2019. Its directors believed current consensus FY pretax profit to be £16.1m. "It is very disappointing that two isolated factors are distracting from the great progress across the rest of the Group," said CEO Rowan Gormley. "We have always said that we would adopt a test and learn approach, and be quick to redeploy capital from underperforming areas, which is exactly what we are doing. "While, this approach is delivering good results in the other business units the scale of the US market means that even a test can have a material effect on profits. "The turnaround plan in Majestic Retail is progressing well, the key initiatives are on track to be delivered on time and on budget, and preparations for peak Christmas trading are well in hand. "Naked Wines UK, Australia and the underlying US business continue to trade well, and we have managed to restore Lay and Wheeler to growth. "Despite these two factors, I am pleased to say we are still on track to resume dividend payments this year and to deliver our goal of £500m sales by 2019. We look forward to giving more details at our Interim results in six weeks time."
+4.88p (+1.69%)delayed 18:15PM