Majestic Wine share price fails to regain much fizz following profit warning yesterday

Francesca Washtell
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Majestic is one of the UK's leading wine retailers (Source: Getty)

Shares in Majestic Wine have failed to regain their fizz today after the announcement of a profit warning yesterday sent the booze merchant's stock plummeting by nearly a quarter.

Majestic's stock failed to make significant gains today, with shares in the wine specialist trading just 1.4 per cent higher this afternoon to 334.72p.

At the market close on Tuesday, a slice of the group had been valued at around 434p but plunged 23.9 per cent to 330p at the close of trading yesterday.

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Majestic has said it is expecting to fall short of its previous revenue target of £440m in the year to March 2017.

This would have been a 10 per cent increase on the most recently financial year, while pre-tax profits were predicted to be £16.1m - up on last year's £4.7m.

Majestic has not said how much it will fall short of this target by, but said weakness in its commercial arm and a £2m setback from a failed direct marketing campaign in the US would be among the drivers.

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The experiment in direct mail in the US had not proved "to be as viable as early tests suggested", Majestic said yesterday.

However, chief executive Rowan Gormley said it was "very disappointing that two isolated factors" had distracted from "great" progress across the group.

The firm's dividend is not under threat and the company has said it is still on track to grow sales from £400m to £500m by 2019.

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